• 2022-05-29
    Arising from the non-routine activities of an enterprise that will lead to an increase in the owners’ equity, which of the following is NOT related to the owners’ capital? ( )
    A: Income.
    B: Loss.
    C: Cost.
    D: Profit.
  • D

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    • 0

      When economic profit is positive, A: total revenue exceeds total economic cost. B: the firm’s owners have successfully solved the principle-agent problem. C: the firm’s owners experience an increase in their wealth. D: both a and c E: all of the above

    • 1

      Which of the following will cause a change in the owners' equity of a business? A: Purchase of equipment with cash B: Payment of the liability with cash C: Investment of cash in the business by the owner D: Sale of equipment for cash at cost

    • 2

      What are the two types of business owners' equity? A: original capital B: invested capital C: retained earnings D: additional capital

    • 3

      Which statement regarding the liabilities and owners’ equity section of balance sheet is False? A: Payment of Dividend Payable eliminates both the assets and the owners’ equity. B: Liabilities are debts or obligations that must be discharged in money or services in the future. C: Owners’ equity is a residual claim to the remaining assets after discharge of debts. D: Balance sheet of corporations should separate Capital Stock and Retained Earnings

    • 4

      The owner's equity is ______. A: the money paid by the owners at inception of a firm B: net worth of a firm C: gross profit of a firm D: the rest resources aside from liabilities