When equipment is purchased on credit, a] assets and liabilities increase. b] assets increase and liabilities decrease. c] assets and owner’s equity increase. d] assets and expenses increase.

a] assets and liabilities increase. More test answers on https://studyhippo.com/chapter-02-accounting-flashcards/

Which of the following types of accounts have a normal credit balance? A. Assets and liabilities B. liabilities and expenses C. Revenues and liabilities D. Capital and drawing

revenues and liabilities More test answers on https://studyhippo.com/accounting-2301-final/

When a business purchases land on account: a) both assets and stockholders’ equity are increased b) assets are decreased and stockholders’ equity is increased c) both assets and liabilities are increased d) assets are increased and liabilities are decreased

both assets and liabilities are increased More test answers on https://studyhippo.com/acct-exams-1-4/

When classifying assets and liabilities:

furniture and fixtures are long – term assets. More test answers on https://studyhippo.com/accounting-test-1-umd-karen-samela/

Stockholders’ equity refers to which to the following? a) None of these. b) Probable future sacrifices of economic benefits. c) The ownership right of the stockholder(s) of the entity. d) A listing of the organization’s assets and liabilities. e) All of these.

c) The ownership right of the stockholder(s) of the entity More test answers on https://studyhippo.com/accy-200-midterm-1-practice-questions/

Gresham college is a *local private college* When reviewing the college’s financial repots, you would expect to see which of the following categories on its statement of assets and liabilities? (Balance Sheet)

*Unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets* More test answers on https://studyhippo.com/chapter-15-accounting-for-colleges-and-universities/

(T/F) The income statement of a firm shows the value of its assets and liabilities over a specified period of time.

False More test answers on https://studyhippo.com/finance-2000-chapter-4/

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Assets And Liabilities Flashcards, test questions and answers

Discover flashcards, test exam answers, and assignments to help you learn more about Assets And Liabilities and other subjects. Don’t miss the chance to use them for more effective college education. Use our database of questions and answers on Assets And Liabilities and get quick solutions for your test.

What is Assets And Liabilities?

Assets and liabilities are two fundamental components of any financial situation. Assets are items that have monetary value, such as cash, stocks, bonds, property or other investments. Liabilities are debts or obligations including credit card debt, mortgages and car loans. Knowing the difference between assets and liabilities is important for understanding your overall financial health.Assets can be divided into two categories: current assets and non-current assets. Current assets are those which can be converted to cash quickly with minimal effort, such as cash on hand or investments that can be sold quickly in the market. Non-current assets include fixed-income securities such as stocks and bonds, real estate, business equipment and any other long-term investments which take longer to convert to cash but also bring in a steady income stream over time. Liabilities are debts you owe to creditors or obligations you must pay back over a period of time. Your liabilities can include credit card debt, student loans, mortgage payments or car loan payments among others. Liabilities typically involve paying interest on top of the principal amount borrowed; this interest is an expense that reduces your overall net worth each month until the loan is paid off completely. By understanding both your assets and liabilities you will be able to get a better overview of your financial status at any given time so that you can make informed decisions about spending habits as well as investing decisions for future growth. It’s also important for monitoring changes in your net worth so that you know how much money is being generated from both sources of income (assets) versus how much money is being spent on debts (liabilities). When it comes to managing finances effectively knowing the difference between assets and liabilities makes all the difference.