Reference no: EM132712879

Problem 1. Which of the following equations properly represents a derivation of the fundamental accounting equation?

a) Assets + liabilities = Owner's equity.

b) Assets = Liabilities + Owner's equity.

c) Assets = Liabilities - Owner's equity.

d) Liabilities = Assets + Owner's equity.

Problem 2. Which is not the process of accounting

a) Selected the economic event

b) Recording and classify

c) Prepare accounting report

d) Determine the price for product

Problem 3. Retained earnings will change over time because of several factors. Which of the following factors would explain an increase in retained earnings?

a) Net income

b) Net loss

c) Dividend

d) Expenses

Problem 4. Which of these items would be accounted for as an expense?

a) Prepaid Salary

b) Accrued Salary

c) Account receivable

d) Monthly rental

Problem 5. Which of the following would not be included on a balance sheet?

a) Prepaid Salary

b) Accrued Salary

c) Account receivable

d) Depreciation expenses