11 liabilities are a insider claims to the business 39 s assets b outsider claims to 4300968
11) Liabilities are:
A) insider claims to the business's assets.
B) outsider claims to the business's assets.
C) economic resources of a business.
D) increases in owner's equity earned by delivering goods or services.
12) Owner's equity is an:
A) insider claim to the business's assets.
B) outsider claim to the business's assets.
C) obligation to pay cash today.
D) obligation to pay cash in the future.
13) All of the following are assets except:
C) merchandise inventory.
D) owner withdrawals.
14) All of the following describe a liability except:
A) investments by owners.
B) economic obligations to creditors.
C) debts to creditors.
D) outsider claims.
15) A promise by a customer to pay cash in the future is a(n):
A) account receivable.
C) prepaid asset.
D) note payable.
16) If owner's equity is $135,000 and total liabilities are $90,000, then total assets would be:
17) Owner's equity and total assets were $32,000 and $79,000 respectively at the beginning of the period. Assets increased 50% and liabilities decreased 60% during the period. What is owner's equity at the end of the period?
18) Total assets and total liabilities were $31,000 and $26,000 respectively at the beginning of the period. Assets increased by 20% and liabilities increased by 10% during the period. What is the owner's equity at the end of the period?
19) A business paid $8,500 to a creditor. The effect of this transaction is to:
A) increase assets and decrease liabilities.
B) increase assets and decrease owner's equity.
C) decrease liabilities and owner's equity.
D) decrease assets and decrease liabilities.
20) If total liabilities decrease by $22,000 and owner's equity increases by $8,000 during the period, then assets must have:
A) increased $30,000.
B) decreased $30,000.
C) increased $14,000.
D) decreased $14,000.