Quiz (1)- B

Level: First Year – G 4

Ahram Canadian University Course Name: Financial Accounting I School of Business
Administration

Q. 1: Choose the best answer:

1- Corporation ends when:
a. Partner(s) withdraws. b. business goes bankrupt.
c. The owner is unable to carry on. d. the stockholder is died.
2- If total liabilities increased by $60,000 and owner’s equity decreased by
$30,000 during a period of time, then total assets must change by what
amount and direction during that same period?
a. $90,000 decrease b. $30,000 decrease
c. $30,000 increase d. $90,000 increase

3- …………is a business entity owned by two or more people who are legally
responsible for the debts and taxes of the business.
a. A corporation. b. A Sole Proprietorship.
c. A Partnership. d. Non all above.

4- ………is the process of recording transactions.

a. Bookkeeping. b. Accounting.
c. Auditing. d. Posting.

5- Credits:
a. Increase both assets and liabilities.
b. Decrease both assets and liabilities.
c. Increase assets and decrease liabilities.
d. Decrease assets and increase liabilities.
Q.2: Presented below is selected information related to Kirby Company at
December 31, 2017.
Loans $ 5,000 - Cash $ 8,500 - Notes Payable $30,000- Equipment $20,500-
Equipment $ 40,000
(a) Determine the total assets of Kirby Company at December 31, 2017.
(b) Determine the owner’s equity of Kirby Company at December 31, 2017
(c) Determine the owner’s equity of Kirby Company at December 31, 2018,
assuming Finch purchased Cars of $30,000, and paid loans in 2018.