A net loss results:
 
when expenses are greater than revenue
when assets are greater than liabilities.
when revenue is greater than expenses.
when expenses are greater than assets.
   
Which financial statement is reported as of a specific date?
 
Balance Sheet
Statement of Owner's Equity
Income Statement
Statement of Changes in Financial Position
   
Identify the account below that is classified as an asset account and would appear on the left side of the accounting equation.
 
Accounts Payable.
Owner's Capital.
Accounts Receivable
Fees Income.
   
Revenue by definition is:
 
an amount a business must pay in the future.
amounts earned from the sale of goods or services
the payment of amounts owed to creditors.
the collection of amounts owed by customers.
   
Owner's equity is:
 
the amount taken out of a business by the owner for personal use.
the financial interest of the owner of a business
the amount the owner owes the business.
the revenues less the expenses.
   
Ginger Yale Ice Company receives money from a customer on account. Recording this transaction will:
 
increase Accounts Receivable.
decrease G. Yale, Capital.
decrease Accounts Payable.
increase Cash
   
The statement of financial position is another term for which financial statement?
 
Income Statement
Statement of Owner's Equity
Balance Sheet
Trial Balance
   
At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts:
Accounts Receivable, $11,350; Prepaid Insurance, $400; Equipment, $26,200 and Cash, $21,650. On the same date,
SloMo owed the following creditors: Simpson Supply Company, $17,000; Allen Office Equipment, $14,500.
The total assets for the SloMo Delivery Service are:
 
$21,650.
$33,400.
$33,000.
$59,600
   
Examples of assets are:
 
cash and accounts receivable
equipment and revenue.
accounts receivable and rent expense.
investments by the owner and revenue.
   
If during the year total assets increase by $75,000 and total liabilities decrease by $16,000, by how much did owner's equity increase/decrease?
 
$91,000 increase
$59,000 decrease
$91,000 decrease
$75,000 increase
   
At the end of its first year of operations, Shapiro’s Consulting Services reported net income of $27,000. They also had account balances of:
Cash, $16,000; Office Supplies, $3,200; Equipment, $24,000 and Accounts Receivable, $8,000. The owner’s total investment for this first
year was $15,000 and the owner withdrew $2,000 for personal use.
What are the total liabilities of Shapiro’s Consulting Services at the end of the first year of operations?
 
$11,200
$27,000
$24,200
$42,000
   
When the owner withdraws cash for personal use,
 
assets decrease and expenses increase.
assets decrease and owner's equity increases.
assets decrease and owner's equity decreases.
owner's equity decreases and revenue decreases.
   
If a business receives $5,000 on account from clients who owed money for services previously billed,
 
identify the effect on the accounting equation:
assets decrease and liabilities increase.
liabilities decrease and owner's equity decreases.
assets remain the same and owner's equity remains the same
owner's equity increases and revenue increases.
   
If the income statement covered a six-month period ending on November 30, 2019, the third line of the income statement heading would read:
 
Month Ended November 30, 2019.
November 30, 2019.
Six-month Period Ended November 30, 2019
Month of November, 2019.
   
The owner's investment or equity in a business is called:
 
cash.
drawing.
capital
accounts payable.
   
When the owner invests equipment in a business,
 
assets increase and owner’s equity decreases.
assets and revenue increase.
assets and owner’s equity increase
liabilities decrease and owner’s equity increases.
   
When equipment is purchased on credit,
 
assets and liabilities increase.
assets increase and liabilities decrease.
assets and owner's equity increase.
assets and expenses increase.
   
At the end of its first year of operations, Shapiro’s Consulting Services reported net income of $27,000.
They also had account balances of: Cash, $16,000; Office Supplies, $3,200, Equipment, $24,000 and Accounts Receivable, $8,000.
The owner’s total investment for this first year was $15,000 and the owner withdrew $2,000 for personal use.
Calculate the ending balance to be reported on the Statement of Owner’s Equity in the Owner’s Capital account.
 
$58,000
$27,000
$42,200
$40,000
   
At the end of the first month of operations for Jackson’s Catering Service, the business had the following accounts:
Cash, $21,000; Prepaid Rent, $500; Equipment, $7,500 and Accounts Payable $4,000.
By the end of the month, Jackson’s had earned $32,000 of Revenues, and used $1,800 of Utilities Expenses,
$4,000 of Rent Expense and $3,600 of Salaries Expenses. Calculate the net income to be reported by the company for this first month.
 
$32,000
$22,600
$26,200
$23,100
   
Which of the following equations is the Fundamental Accounting Equation?
 
Assets + Liabilities = Owner’s Equity
Assets – Owner’s Equity = Liabilities
Assets = Liabilities + Owner’s Equity
Assets – Liabilities = Owner’s Equity
   
At the end of the first month of operations for Jackson's Catering Service, the business had the following accounts:
Cash, $19,000; Prepaid Rent, $500; Equipment, $5,000 and Accounts Payable $2,000. By the end of the month
 Jackson's had earned $20,000 of Revenues, $1,000 of Utilities Expenses and $1,500 of Salaries Expenses.
Calculate the net income to be reported by the company for this first month.
 
17,500
  The people, companies, or government agencies to whom a firm owes money are called ________.
 
creditors
   
The process by which financial information about a business is recorded, classified, summarized, interpreted,
and communicated to owners, managers, and other interested parties is called ________.
 
accounting
   
Tax accounting is a service offered by public accounting firms that involves tax ________ and tax planning.
 
compliance