Quiz: Accounting Basics 5 - Stock/Shareholders Equity
8 Questions
| Total Attempts: 113
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 ..........
Questions: 41 | Attempts: 65876 | Last updated: Nov 16, 2020
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Sample QuestionA source document is:
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