GB 518 RANK Career Path Begins/gb518rank.com GB 518 RANK Career Path Begins/gb518rank.com | Page 12

Expenses
Revenues
Equity
Liabilities
Question 12. Question :
An example of a financing
activity is:
Buying office supplies
Obtaining a long-term loan
Buying office equipment
Selling inventory
Buying land
Question 13. Question :
A parcel of land is: offered for
sale at $150,000, assessed for tax purposes at $95,000,
recognized by its purchasers as being worth $140,000 and
purchased for $137,000. The land should be recorded in the
purchaser's books at:
$95,000
$137,000
$138,500
$140,000
$150,000
Question 14. Question :
Prepaid expenses are:
Payments made for products and services that do not ever
expireClassified as liabilities on the balance sheet
Decreases in retained earnings
Assets that represent prepayments of future expenses
:
A company has twice as much owner's equity as it does
liabilities. If total liabilities are $50,000, what amounts of assets
are owned by the company?
$50,000