1. Equipment refers to:
a) items which had to be borrowed;
b) items which have a task performed upon them;
c) items which an owner invests into his/her business;
d) items which perform a task;
e) none of the above.
2. An account receivable refers to:
a) amounts owing to creditors for the purchase of goods and services;
b) amounts owed to us for the sale of goods and services;
c) a long term debt wherein the collateral consists of the property bought;
d) an amount of money owed to a bank as a result of a loan made to the business;
e) a and b.
3. The following accounts are placed in the proper order of liquidity:
a) mortgage payable, cash, and capital;
b) cash, accounts receivable, and equipment;
c) automobile, cash, and accounts receivable;
d) assets, liabilities, and owner's equity;
e) none of the above.
4. In the field of accounting, "owner’s equity" refers to:
a) an owner’s personal claim in the assets of the business;
b) the total of all of the company's assets;
c) a large savings of money;
d) large machinery required for the production of goods or services;
e) all of the above.
5. “Supplies” refer to:
a) items which are purchased on credit;
b) items which are purchased with cash;
c) items which perform an action;
d) items which are consumed as they are used;
e) none of the above.