Reference no: EM132911530

Problem 1: Which of the following statements is true of a balance sheet?

Option 1: Total assets equal total liabilities plus total equity.

Option 2: The balance sheet reports total revenues and expenses.

Option 3: Total assets plus total equity equal total liabilities.

Option 4: The balance sheet reports the beginning owner's equity.

Problem 2: Which organization is responsible for establishing reporting rules for nonprofit entities?

Option 1: Securities and Exchange Commission

Option 2: Governmental Accounting Standards Board

Option 3: American Institute of Certified Public Accountants

Option 4: Financial Accounting Standards Board

Problem 3: Receiving money from a customer immediately after providing a service will cause total assets, total liabilities, and equity to:

Option 1: increase, remain unchanged, and decrease, respectively.

Option 2: remain unchanged, remain unchanged, and remain unchanged, respectively.

Option 3: none of these.

Option 4: increase, remain unchanged, and increase, respectively.

Option 5: increase, increase, and remain unchanged, respectively.