The basic accounting equation cannot be restated as a. Assets â?? Liabilities = Stockholders’ E

105. The
basic accounting equation cannot be
restated as
a. Assets – Liabilities = Stockholders’ Equity.
b. Assets – Stockholders’ Equity = Liabilities.
c. Stockholders’ Equity + Liabilities = Assets.
d. Assets + Liabilities = Stockholders’ Equity.

106. Stockholders’ equity is decreased by all of
the following except
a. sales of stock.
b. net losses.
c. expenses.
d. dividends.

107. A net loss will result during a time period
when
a. liabilities exceed assets.
b. dividends exceed investments.
c. expenses exceed revenues.
d. revenues exceed expenses.

108. If
total liabilities increased by $15,000 andstockholders’ equity increased by $10,000 during
a period of time, then total assets must change by what amount and direction
during that same period?
a. $25,000 decrease
b. $5,000 decrease
c. $5,000 increase
d. $25,000 increase

109. If total liabilities decreased by $15,000
andstockholders’
equity increased by $10,000 during a period of time, then total assets must
change by what amount and direction during that same period?
a. $25,000 decrease
b. $5,000 decrease
c. $5,000 increase
d. $25,000 increase

110. If
total liabilities decreased by $25,000 andstockholders’ equity increased by $15,000 during
a period of time, then total assets must change by what amount and direction during
that same period?
a. $40,000 decrease
b. $10,000 decrease
c. $10,000 increase
d. $40,000 increase

111. If
total liabilities decreased by $15,000 andstockholders’ equity decreased by $10,000
during a period of time, then total assets must change by what amount and
direction during that same period?
a. $25,000 decrease
b. $5,000 decrease
c. $5,000 increase
d. $25,000 increase

112. If total liabilities increased by $17,000
during a period of time andstockholders’ equity decreased by $6,000 during the same period,
then the amount and direction (increase or decrease) of the period’s change in
total assets is a(n)
a. $23,000 decrease.
b. $11,000 decrease.
c. $11,000 increase.
d. $23,000 increase.

113. If
total assets equal $345,000 and total stockholders’ equity equal $120,000, then
total liabilities must equal
a. $465,000.
b. $225,000.
c. $120,000.
d. There is not enough information given to
determine this.

114. Which
of the following will not cause a change
in the stockholders’ equity of a business?
a. An increase in prepaid expenses.
b. An increase in retained earnings.
c. The sale of common stock.
d. The declaration and payment of dividends.