9.

Identify the generally accepted accounting concept principle, assumption, or constraint violated in the following situation: M.T. Careless, does not keep the books of his business, Careless Creations, separate from his personal records.

Revenue recognition

Going Concern

None of the others alternatives are correct

Separate Entity

Matching

10. On June 30, 2014, the balance sheet of Zorab & Co. showed total assets of $400,000, total liabilities of $300,000, and owner's equity of $100,000. The following transactions occurred in July of 2014: The owner invested an additional $70,000 cash in the business. The business purchased equipment for $150,000, paying $60,000 cash and issuing a note payable for $90,000. The business paid off $40,000 of its accounts payable. As of July 31, 2014, what best represents the accounting equation of this company:

$430,000 = $260,000 + $170,000

$470,000 = $300,000 + $170,000

$490,000 = $390,000 + $100,000

None of the others alternatives are correct

$520,000 = $350,000 + $170,000

11.

Liabilities increase by $1 during the period and Assets decrease by $1 during the same period. This implies that:

The impact on Equity cannot be predicted from the limited information provided

Equity decreases by $2 during this period

Equity increases by $1 during this period

Equity decreases by $1 during this period

Equity remains unchanged during this period

12. Revenues are a measure of the inflows of assets (or reductions in liabilities) from selling goods and providing services to customers. Which of the following is not a revenue transaction?

Sold merchandise on account to a customer

None of the others alternatives are correct

Went to the local bank and borrowed money to be used in the business

Sold merchandise for cash to a customer

Delivered weekly magazines to a subscriber, who had paid previously for a one year's subscription