English Financial Accounting - Multiple Choice Questions ch01Chapter 11 Which of the following will be recorded in the owners equity column as an increasea An exchange of assets b Th

th the death of the owner. c) owned by shareholders. d) not subject to taxation.10. Which financial statement shows the financial position of a company at a specific point in time?a) Income statement b) Statement of owner's equityc) Balance sheet d) Cash flow statement11. What is the accounting equation?a) Assets = Liabilities - Owner's Equity b) Assets + Liabilities = Owner's Equityc) Assets - Liabilities = Owner's Equity d) Liabilities + Owner's Equity = Assets12. Which of the following is NOT a current asset?a) Accounts receivable b) Cashc) Inventory d) Buildings13. What is the purpose of adjusting entries?a) To correct errors in the accounting records b) To record transactions that were missed during the accounting periodc) To ensure that the financial statements reflect the true financial position of the company d) All of these answers are correct.14. What is the purpose of a trial balance?a) To ensure that all transactions have been recorded accurately b) To determine the net income or net lossc) To prepare financial statements d) To record adjusting entries15. Which financial statement shows the revenues and expenses of a company over a specific period of time?a) Balance sheet b) Income statementc) Statement of owner's equity d) Cash flow statemen