The equation that shows assets equal liabilities plus stockholders' equity signifies that a company:
A. Is profitable.
B. Has resources equal to claims to those resources.
C. Is able to pay its obligations as they come due.
D. All of the other answers provide a correct statement.
Answer: B
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On a bank reconciliation, the amount of an NSF check is:
A. added to the company's balance of cash. B. deducted from the bank balance of cash. C. deducted from the company's balance of cash. D. added to the bank balance of cash.
When you design a table you should allow nulls if:
A) A value is not required by business rules B) The value could be unknown at a particular point of time C) Both A and B D) None of the above
Which of the following is not within the class of foreseen users of an accountant's work product?
A. A prospective shareholder of the client. B. A lender bank when the accountant knows only that the client will use the financial statements to obtain a loan from an unspecified source. C. A bank when the accountant knows the client will rely on the financial statements as the basis for a loan from the bank. D. An investor if the accountant knows that the client is seeking capital from a select group of investors.
When interest is accrued on a note payable, but not paid, the
A. Interest Expense account is decreased; the Interest Payable account is increased. B. Notes Payable account is increased; the Interest Payable account is increased. C. Interest Expense account is increased; the Interest Payable account is decreased. D. Interest Expense account is increased; the Interest Payable account is increased.