Quiz: Accounting Basics 5 - Stock/Shareholders Equity

8 Questions | Total Attempts: 113

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Accounting Quizzes & Trivia

Questions and Answers
  • 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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