These are increases in economic benefits during the period in the form of inflows or enhancements of assets or decreases in liabilities that result in increases in equity, other than those relating to investments by the business owners. a. Expense b. Income c. Equity d. Assets Which of the following statements is correct? a. Income increases equity b. Expense increases equity c. Income decreases equity d. Income and expense do not affect equity Which of the following statements is incorrect? a. If expense is greater than income, the difference is profit. b. If income is greater than expenses, the difference is profit. c. If income is less than expenses, the difference is loss. d. Profit increases equity, The start-up capital of a business consisted of P1,000,000 cash provided by the business owner and an additional P250,000 from a bank loan. The total start-up assets of the business therefore is a. P1,250,000 . b. P_(1,000,000) . c. P 750,000 . d. P250,000 . A business has total liabilities of P100,000 and total equity of P80,000 . How much is the total assets? a. 180,000 b. 100,000 c. 80,000 d. 20,000 A business has total assets of P100,000 and total equity of P80,000 . How much is the total liabilities? a. 180,000 b. 100,000 c. 80,000 d. 20,000 A business has total assets of P100,000 and total liabilities of P40,000 . How much is the total equity? a. 140,000 b. 100,000 c. 60,000 d. 20,000 A business earns total income of P 100,000 and incurs total expenses of P 70,000 . How much is the profit (loss)? a. 30,000 b. (30,000) c. 100,000 d. 70,000 A business earns total income of P_(2)30,000 and incurs total expenses of P 300,000 . How much is the profit (loss)? a. 30,000 b. (30,000) c. (70,000) d. 70,000 A business earns total income of P 630,000 and reports profit of P 270,000 . How much is the total expenses? a. 280,000 b. 320,000 c. 360,000 d. 380,000 A business incurs total expenses of P630,000 and reports loss of P_(2)70,000 . How much is the total income?
Question
165
Answer
4.4(270 votes)
Alejandro SantosMaster · Tutor for 5 years
Answer
<p><br />7. B <br />8. A <br />9. A<br />10. A <br />11. A <br />12. D <br />13. C <br />14. A <br />15. C<br />16. C<br />17. D </p>
Explanation
<p> <br />Let’s analyse each question:<br />7. Definition type question, answer will be the term defined in the accounting context<br />8. Statement identification question, the correct statement about accounting principle is the answer<br />9. Same as Q8, but identifying the incorrect statement <br />10. To solve a basic cash flow problem, you need to add all the inflows to find the total start-up business capital. Choose the correct number as (answer).<br />11. The accounting equation is: Assets = Equity + Liabilities. Given Equity and Liabilities, simply sum them up to find the Assets<br />12. Using the accounting equation again, rearrange it to: Liabilities = Assets - Equity to find the result. <br />13. Using the accounting equation Assets = Equity + Liabilities, rearrange it to obtain Equity = Assets - Liabilities<br />14-15. By subtracting the total expenses from total income, the profit or loss can be found <br />16-17. Following similar principle as above questions but solving for expenses or income this time, while taking into account if business is in profit, this means Income > Expenses and similarly if a business is in loss, this means Income < Expenses</p>
Does the answer help you? Rate for it!
You might be interested
Explore more questions
- for Science, Mathematics and Englinh/ReadingSee Answer05/15/2024
- There qquad the president and his wife.* goes goSee Answer05/15/2024
- Cestiplete the eraphic organirer below by filling out the alanics fharnctinatics of qualitative research. Use a separate sheet ior you answer.See Answer05/15/2024
- Refers to uncontrollable factors that can affect the process of conducting the study, specifically on the part of the methodology and results Methodological limitations can include the following: required number of participants sufficiency of references to support claims data collection measurement technique limitations Limitation technique limitations Personal limitations include the following: language barriers time constraints financial or budgetary limitationsSee Answer05/15/2024
- Which of the following is a dry heat cooking method? A. steaming B. stewing C. roasting D. poachingSee Answer05/15/2024
