Which of the following characteristics must an economic resource have in order to be classified as an asset? the access to the asset must be under the control of the business entity O the resource was acquired as a result of a past transaction O the resource must have future service potential all of the above Question 5 2 pts A deficit is the deficiency when capital stock is issued for less than par negative retained earnings O appropriated retained earnings O an excess of liabilities over assets Question 6 2 pts Comprehensive income consists of net income + other adjustments to retained earnings O operating income other income and losses O net income + other comprehensive income O other comprehensive income + unrealized changes in the value of available for sale securities

Question 4

Solution is Option 4: All of the above.

An asset should be under the control of the entity, acquired as a result of past transaction and it must have future service potential.

Question 5

Solution is Option 4: an excess of liabilities over assets.

When the external liabilities are in excess of assets held, it is called a deficit.

The deficiency when capital stock is issued at less than par is called discount. Appropriated retained earnings is the amount which is issued as dividends or paid as taxes from the accumulated retained earnings and when the balance in retained earnings after such appropriation is negative, it is called negative retained earnings.

Question 6

Solution is Option 3: Net Income + Other Comprehensive Income

Option 1 would be included in the statement of equity or retained earnings as the case may be

Option 2 would give you the Net income before taxes

Option 4 would give you the total of other comprehensive income