liabilities and equity in accounting coursera week 3 quiz answers
Long-term Obligations and Notes Payable Practice Quiz
1. True or False: Any money borrowed or owed by a business, regardless of the payback time frame is considered a long-term obligation.
- True
- False
2. Which of the following is not an example of a long-term liability?
- Mortgage Loan
- Vehicle Loan
- Accounts Payable
- Notes Payable
3. If a company decides to split a loan or note payable on their balance sheet, which of the following would go as a line item in current liabilities?
- The total amount due on the long-term obligation in the next month.
- The total amount due on the long-term obligation in the next 6 months.
- The total amount due on the long term obligation in the next 8 months.
The total amount due on the long term obligation in the next 12 months.
Bank Loans Practice Quiz
4. A legal claim on an asset used as collateral in satisfying a debt is called a:
- Held Asset
- Lien
- Collateral Asset
- Secured Asset
5. The process of systematically repaying a loan over time is referred to as:
- Amortization
- Depreciation
- Capitalization
- Indemnification
6. A loan used to finance a company’s daily operations is called a(n):
- Unsecured Loan
- Commercial Line of Credit
- Working Capital Loan
- Secured Loan
Stockholder Equity Practice Quiz
7. Owner’s equity is calculated by:
- Adding up all of the business assets and deducting all of its liabilities.
- Adding up all of the business liabilities and deducting all of its assets.
- Subtracting all of the business assets from its liabilities.
8. If a company has $80,000 in total assets and $40,000 in liabilities, the owner’s equity is ______.
- $80,000
- $40,000
- $20,000
- $60,000
Shuffle Q/A 1
9. You record an owner’s draw by _____ the Owner’s Draw Account and _____ the Cash Account.
- crediting; debiting
- debiting; debiting
- crediting; crediting
- debiting; crediting
10. At the end of a fiscal year, Winston’s Seafood had draws totaling $8,000. What is the first step in closing the draw account for this fiscal period?
- Crediting $8,000 to the Owner Withdrawals account.
- Crediting $8,000 the Owner Capital account.
- Deducting $8000 from the Owner Equity account.
