CHAPTER 3:
Section 1 Property and Financial Claims
1.
When you buy property and agree to pay for it later, you are buying on
a.
equity
b.
property rights
c.
credit
d.
escrow
2.
If the creditor`s financial claim to property totals $1,000 and the owner`s financial claim to property totals $11,000 , the property value is
a.
$10,000
b.
$11,000
c.
$12,000
d.
$1,000
3.
The accounting term for the financial claims to assets is
a.
credit
b.
investments
c.
property rights
d.
equity
4.
The word equities refers to claims against the assets of a business by
a.
both creditors and owners
b.
creditors only
c.
owners only
d.
customers only
5.
Anything of value that is owned or controlled is called
a.
equity
b.
property
c.
legal entity
d.
investment
6.
Property and financial claims are measured in
a.
the number of assets
b.
the credit available
c.
dollar amounts
d.
liabilities only
7.
The accounting equation is
a.
assets + liabilities = owners equity
b.
assets + owners equity = liabilities
c.
property + property rights = financial claims
d.
assets = liabilities + owners equity