Understanding Financial Statements Bizzer Professional Training


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Please answer the questions below
Practice Excercise


The following excercise should aid in understanding Double Entry Accounting. Please answer the questions below and proceed by clicking the Appropriate button located next to the answer
1. A company has $1,000,000 Owners' Equity and $75,000 in liabilities. What are the assets for the company?
 
$1,000,000
 
$75,000
 
$925,000
 
None of the above

2. A company has cash in the bank of $850,000, inventory of $50,000 and a building worth $100,000. These are the only assets for the company. The company has liabilities that amount to $925,000. How much is owners' equity in this company?
  $1,000,000
  $75,000
  $925,000
  None of the above

3. Which of the following is not an asset:
  Retained earnings
  A roto-tiller
  A stapler
  20 kilos of fertilizer
  All of the above

4.
A share of stock in General Motors that your company owns would be:
A liability
Owner's equity
An asset
All of the above
None of the above

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