CHOOSE A,B,C OR D AND EXPLAIN ALL OF YOUR DECISIONS 1. Fossil is famous for fashion wristwatches and leather goods. At the end of a recent year, Fossil’s total assets added up to $363,000,000, and stockholders’ equity was $228,000,000. How much were Fossil’s liabilities? a. Cannot determine from the data given b. $363,000,000 c. $135,000,000 d. $228,000,000
CHOOSE A,B,C OR D AND EXPLAIN ALL OF YOUR DECISIONS
1. Fossil is famous for fashion wristwatches and leather goods. At the end of a recent year, Fossil’s total assets added up to $363,000,000, and
a. Cannot determine from the data given
b. $363,000,000
c. $135,000,000
d. $228,000,000
2. Assume that Fossil sold watches to a department store on account for $48,000. How would this transaction affect Fossil’s
a. Increase both assets and liabilities by $48,000
b. Increase both assets and stockholders’ equity by $48,000
c. Increase both liabilities and stockholders’ equity by $48,000
d. No effect on the accounting equation because the effects cancel out
3. External users of accounting information are:
A. actual and potential investors, employees, lenders
B. customers, suppliers, investors, owners, managing the business C. shareholders, managers, the government, the general public
D. customers, lenders, suppliers, investors
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