FNMN.WARD.16.01-02 - LO: 01-02 LEARNING OBJECTIVES: ACCT.ACBSP.APC.02 GAAP ACCREDITING STANDARDS: – ACCT.AICPA.FN.03 Measurement – BUSPROG: Analytic The accounting equation can be expressed as Assets Liabilities = Stockholders' Equity. – True False True ANSWER: Easy DIFFICULTY: Bloom's: Remembering ACCT.WARD.16.01-03 - 01-03 LEARNING OBJECTIVES: ACCT.ACBSP.APC.06 - Recording Transactions ACCREDITING STANDARDS: ACCT.AICPA.FN.03 Measurement – BUSPROG: Analytic The rights or claims to the assets of a business may be subdivided into rights of creditors and rights of stockholders. True False True ANSWER: Challenging DIFFICULTY: Bloom's: Remembering ACCT.WARD.16.01-03 - 01-03 LEARNING OBJECTIVES: ACCT.ACBSP.APC.01 Purpose ACCREDITING STANDARDS: – ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 Measurement – BUSPROG: Analytic The stockholders' rights to the assets rank ahead of the creditors' rights to the assets. True False False ANSWER: Easy DIFFICULTY: Bloom's: Remembering ACCT.WARD.16.01-03 - 01-03 LEARNING OBJECTIVES: ACCT.ACBSP.APC.01 Purpose ACCREDITING STANDARDS: – ACCT.AICPA.FN.03 Measurement – BUSPROG: Analytic If the liabilities owed by a business total $300,000 and stockholders' equity is equal to $300,000, then the assets also total $300,000. True False False ANSWER: Assets = Liabilities + Equity = $300,000 + $300,000 = $600,000 RATIONALE: Stockholders’ Moderate DIFFICULTY: Bloom's: Remembering ACCT.WARD.16.01-03 - 01-03 LEARNING OBJECTIVES: ACCT.ACBSP.APC.06 - Recording Transactions ACCREDITING STANDARDS:
LEARNING OBJECTIVES: FNMN.WARD.16.01-02 - LO: 01-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 – GAAP ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic The accounting equation can be expressed as Assets – Liabilities = Stockholders' Equity. True False ANSWER: True DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-03 - 01-03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic The rights or claims to the assets of a business may be subdivided into rights of creditors and rights of stockholders. True False ANSWER: True DIFFICULTY: Challenging Bloom's: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-03 - 01-03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 – Purpose ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic The stockholders' rights to the assets rank ahead of the creditors' rights to the assets. True False ANSWER: False DIFFICULTY: Easy Bloom's: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-03 - 01-03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 – Purpose ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic If the liabilities owed by a business total $300,000 and stockholders' equity is equal to $300,000, then the assets also total $300,000. True False ANSWER: False RATIONALE: Assets = Liabilities + Stockholders’ Equity = $300,000 + $300,000 = $600,000 DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-03 - 01-03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions
FinMan_Chapter_01_Introduction_to_Accounting_and_Business.docx