Quiz: Accounting Basics 5 - Stock/Shareholders Equity

8 Questions | By Frankwood | Last updated: Mar 21, 2022 | Total Attempts: 150

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1.

For a company, the accounting equation states that:Assets = Liabilities + .................................. .............................
2.

For a soletrader or a partnership the accounting equation states that :Assets = Liabilities + ...................... ............................
3.

For corporations and limited liability companies the shareholders are entitled to a share of the companies profits - this is called a what?
- A.
  
  Drawing
- B.
  
  Withdrawal
- C.
  
  Dividend
4.

For corporations, profits less dividends equals ................... .................
5.

Soletraders and partnerships do not have external owners.
- A.
  
  True
- B.
  
  False
6.

A partnership is defined as two or more people working towards a profit.
- A.
  
  True
- B.
  
  False
7.

The main disadvantage of trading as a soletrader or as a partnership is that the owner's .................... is unlimited - and the owners personal assets maybe in danger.
8.

Profits extracted from a business by a soletrader or a partner are called ..........

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