The balance sheet is a financial statement that shows the financial position of a business entity.
Acquired assets and services should be recorded at the most accurate estimate of their value.
If an owner invested $200,000 in a business, owner's equity would increase.
Increases in cash are always a result of owner's investments in the business.
The Cash Flow Statement is a report of cash flows from four types of business activities.
Decision makers are the users of accounting information.
A building cleaning business purchased cleaning supplies for $500 on credit. What is the effect on the accounting equation?
Assets are decreased by $500 and Owner's Equity is decreased by $500.
Assets are increased by $500 and Owner's Equity is increased by $500.
Assets are decreased by $500 and Liabilities are decreased by $500.
Assets are increased by $500 and Liabilities are increased by $500.
If you started a window cleaning business and deposited $1,000 of your own personal money in a bank account for the business, what effects are there to the accounting equation (Assets = Liabilities + Owner's Equity)?
Liabilities are decreased and Owner's Equity is increased.
Assets are increased and Owner's Equity is decreased.
Assets are decreased and Liabilities are decreased.
Assets are increased and Owner's Equity is increased.
When you charge a customer $30 for mowing（修剪） their lawn, what is the $30?
Revenue.
A liability.
An expense.
An obligation.
You have ownership of a Lawn Service business. You store gasoline in a holding tank and draw it out as you need it. You mow lawns all day and use $20 worth of gasoline. What is the $20 worth of gasoline?
An expense.
An asset.
A liability.
Owner's Equity.
You are studying a financial statement. By studying the information on the statement, you can tell what the business owns and what it owes as of a certain date. What are you looking at?
Income statement.
Statement of cash flows.
Statement of owner's equity.
Balance sheet.
You have possession of an Auto Repair business. For the month of June, 1997, the business charged its customers $3,000. The business paid $4,000 in expenses for rent and labor for a total of $1,000. What was the result for the month of June?
The business earned a profit of $1,000 for the month of June.
The business acquired an asset of $1,000 during the month of June.
The business suffered a loss of $1,000 for the month of June.
The business acquired a liability of $1,000 during the month of June.
You are studying a financial statement. By studying the information on the statement, you can tell what the business owed the owner at the beginning of the year, what profit or loss the business had for the year, what the owner invested during the year, what the owner withdrew from the business during the year, and wha
Statement of cash flows.
Statement of owner's equity.
Income statement.
Balance sheet.
During the month of July, a business had Revenue of $16,000 and Expenses of $19,000. The owner did not invest any money or withdraw any money during July. What is the overall effect of this?
The business has $3,000 more in Assets than it did in June.
The business owes outsiders $3,000 more than it did in June.
The business owes the owner $3,000 more than it did in June.
The business owes the owner $3,000 less than it did in June.
Which accounting principle or concept holds that the entity will remain in operation for the foreseeable future?
The Going-Concern Concept.
The Entity Concept.
The Stable-Monetary-Unit Concept.
The Cost Principle.
Land is purchased with cash for $40,000. What effect will this transaction have on the accounting equation?
Increase assets and owner's equity by $40,000.
Increase assets and liabilities by $40,000.
No net effect on any of the accounting equation elements.
Decrease owner's equity by $40,000 and increase assets by $40,000.
If total assets are $600,000 and total liabilities are $150,000, what is owner's equity?
$600,000.
$450,000.
$750,000.
$50,000.