MBA5009 Week 2 Knowledge Check

Question 1

The accounting equation says that everything must balance and equal out to show that we have recognized events correctly.

a) True

b) False

Question 2

Expenses will always have the term “expense” at the end of the account name

a) True

b) False

Question 3

The balance sheet is a record of the assets, liabilities, and owners’ equity of a company as of a point in time.

a) True

b) False

Question 4

The financial statements show the company's operations and results in financial terms.

:

a) True

b) False

Question 5

The statement of stockholders' equity explains changes in equity from net income (or loss) and from owner investment and withdrawals over a defined period of time.

a) True

b) False