Quiz 1

Question 1

Assets

Answer 1

Probable future economic benefits

Question 2

Liabilities

Answer 2

Probable future sacrifices of economic benefits

Question 3

Equity

Answer 3

Called shareholders’ equity or stockholder’s equity for a corporation is the residual interest in the assets of an entity that remains after deducting its liabilities (net assets)

Question 4

Investments by Owners

Answer 4

Increases in equity of a particular business enterprise resulting from transfers to it from other entities of something of value to obtain or increase ownership interest in it

Question 5

Distributions to Owners

Answer 5

Decreases in equity of a particular enterprise resulting from transfers to owners

Question 6

Comprehensive Income

Answer 6

The change in equity of a business enterprise during a period from transactions and other events and circumstances from non owner sources. It includes all changes in equity during a period except those resulting from investments by owners and distribution to owners

Question 7

Revenues

Answer 7

Inflows or other enhancements of assets of an entity or settlements of its liabilities during a period from delivering or producing goods, rendering services, or other activities that constitute the entity’s ongoing major or central operations

Question 8

Expenses

Answer 8

Outflows or other using up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or other activities that constitute the entity’s ongoing major, or central operations

Question 9

Gains

Answer 9

Increases in equity from peripheral or incidental transactions of an entity

Question 10

Losses

Answer 10

Represent decreases in equity arising from peripheral or incidental transactions of an entity