731. What is equity?
A: Cash from the business
B: Liability of a business
C: Owner’s claim on total assets
D: Owner’s claim on total liabilities
732. The gross decrease in economic benefits for the business are what?
A: Expenses
B: Obligations
C: Creditors
D: Income or gain
733. An asset must be _ by the business to be shown as an asset in its balance sheet
A: Controlled
B: Owned
C: Possessed
D: Used
734. Liabilities are arisen from which of the following events?
A: Present event
B: Past event
C: Future event
D: None of them
735. Which of the following can be considered as the most important phase of the accounting cycle, and it is the primary objective of financial accounting?
A: Identifying transactions
B: Preparing T Accounts
C: Preparing financial statements
D: Preparing trial balances
736. Which is the most important characteristic that all assets of a business have?
A: Long life of assets
B: Value of assets
C: Intangible nature of assets
D: Future economic benefits
737. _ is a separate legal entity that Total capital can be divided into many shares.
A: Partnership
B: Sole proprietorship
C: Company
D: Non-profit organization
738. An asset possess which of the following?
A: Future economic benefits for the business
B: All kinds of benefits for the business
C: Expenses for the business
D: Merits and Demerits for the business**
739. Considering that the standard time for a job is 8 hours, the actual time spent is 6 hours, and the hourly rate is 2 dollars. How much are all wages covered by the Halsey premium plan?
A. 18 $
B. 1-4 $
C. 16 $
D. 12 $
740. In considering a special order situation that will enable a company to make use of currently idle capacity, which of the following costs will be irrelevant:
A. Depreciation
B. Direct labor
C. Variable factory overhead
D. None of these
Admin