Self Assessment Quizzes

CHAPTER 19: Section 1 The Ownership of a Corporation

	1.	Retained Earnings is

		a.	increased by credits
		b.	listed on the Income Statement
		c.	decreased by credits
		d.	increased by debits

	2.	Investments by owners of a corporation are recorded in the

		a.	Owner`s Capital account
		b.	Investments by Owners account
		c.	Capital Investment Account
		d.	Capital Stock account

	3.	Stockholders` investments are recorded in the

		a.	Cash in Bank account
		b.	Accounts Receivable account
		c.	Capital Stock account
		d.	Retained Earnings account

	4.	The value of the stockholders` claims to the corporation are called

		a.	stockholders` equity
		b.	retained earnings
		c.	capital stock
		d.	stockholders` alliance

	5.	When stockholders invested $50,000 in exchange for shares of stock in a corporation, the accounts affected were

		a.	Accounts Receivable and Cash in Bank
		b.	Accounts Receivable and Capital Stock
		c.	Cash in Bank and Capital Stock
		d.	Stockholder`s Equity and Capital Stock

	6.	By having financial statements always cover the same length of time (for example, one month or one year) it allows the statements to be

		a.	reliable
		b.	relevant
		c.	comparable
		d.	the same

	7.	If information "makes a difference" it is considered

		a.	vital
		b.	reliable
		c.	comparable
		d.	relevant