Equity Accounting Quiz Form
Equity Accounting Quiz Form
Which of the following best describes equity in accounting?
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The value of assets owned by a company
The residual interest in the assets of the entity after deducting liabilities
The total revenue generated by a company
The amount of cash held by a company
Which accounts are classified under equity? (Select all that apply.)
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Retained Earnings
Common Stock
Accounts Payable
Additional Paid-in Capital
Inventory
On which financial statement is equity primarily reported?
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Balance Sheet
Income Statement
Statement of Cash Flows
Notes to Financial Statements
A company issues new shares of common stock. What is the immediate impact on equity?
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Equity increases
Equity decreases
No impact on equity
Equity is transferred to liabilities
Which action would decrease a company’s retained earnings?
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Issuing new shares
Paying dividends
Purchasing equipment
Borrowing funds
Please rate your confidence in your answers to this quiz.
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Match the equity component to its correct description.
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Rows
Common Stock
Retained Earnings
Additional Paid-in Capital
Description
Represents ownership shares issued
Profits retained in the business
Excess amount paid by investors over par value
Represents ownership shares issued
Profits retained in the business
Excess amount paid by investors over par value
Represents ownership shares issued
Profits retained in the business
Excess amount paid by investors over par value
Which of the following transactions would NOT affect total equity?
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Issuing preferred stock
Paying cash dividends
Net income for the year
Purchasing inventory
Select all that are considered components of shareholders’ equity.
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Treasury Stock
Bonds Payable
Preferred Stock
Accumulated Other Comprehensive Income
Notes Receivable
Which statement is true regarding treasury stock?
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It increases total equity
It decreases total equity
It has no impact on equity
It is reported as an asset
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