D Question 1 1 pts The balance sheet shows whether or not a business is profitable. True O False D Question 2 1 pts A debt that a business owes is called an asset a liability owner's equity O revenue Question 3 1 pts Assets are something of value that the business owns or has control of. True False Question 4 1 pts John contributed $6,000 cash to a sole proprietorship by opening a bank account in the name of the business, United Marketing. John received capital in the business in exchange. This transaction results in an increase in the assets of the business. True False Question 5 1 pts Many liabilities have the word receivable in their titles. O True O False Question 6 1 pts Equity increases when revenues are earned. True False Question 7 1 pts Which of the following statements is TRUE of an income statement? There is net income when total expenses are greater than total revenues. There is a net loss when total expenses are less than total revenue. There is a net loss when total expenses are greater than total liabilities. There is net income when total revenues are greater than total expenses. Question 8 1 pts Every accounting entry must affect both sides of the accounting function True False Question 7 1 pts Which of the following statements is TRUE of an income statement? There is net income when total expenses are greater than total revenues. There is a net loss when total expenses are less than total revenue. There is a net loss when total expenses are greater than total liabilities. There is net income when total revenues are greater than total expenses. Question 8 1 pts Every accounting entry must affect both sides of the accounting function True False D Question 9 1 pts Which of the following is the correct accounting equation? Assets + Liabilities - Equity Assets = Liabilities + Equity Assets + Revenues = Equity Assets + Revenues = Liabilities + Expenses Question 10 1 pts Company profits will not affect owners equity True O False D Question 11 3 pts Gena's Cleaning Services performs services for its customers during March. Payments for the March services are received in June. How does the transaction for the collection of cash from customers affect the accounting equation of Gena's Cleaning Services? O liabilities increase and assets increase O total assets remain the same assets increase and revenues increase assets increase and equity decreases Question 12 3 pts Provide the definition of each of the following accounting assumptions. Definition Assumption Monetary Unit Economic Entity 12pt v Paragraph v | BI U A D Question 13 3 pts Which of the following is the correct order of preparation of financial statements? O Income statement statement of owner's equity balance sheet statement of cash flows Statement of owner's equity balance sheet income statement statement of cash flows O Balance sheet statement of owner's equity income statement statement of cash flows O Balance sheet income statement statement of owner's equity statement of cash flows 13:01 Search Take Quiz Exit Statement of owner's equity + balance sheet income statement statement of cash flows Balance sheet statement of owner's equity income statement statement of cash flows Balance sheet income statement statement of owner's equity statement of cash flows Question 14 3 pts Describe how the following affect the basic accounting equation: Pav rash for enuinment Select) doesn't affect the equation at all ly decrease cash and increase owners equity exchanges one asset for another increase asset and decrease liability D Question 15 3 pts Question 14 3 pts Describe how the following affect the basic accounting equation: Pay cash for equipment [ Select ] Invest cash in the business (Select] Pay cash owed for services previously purchased (Select] D Question 13 3 pts Which of the following is the correct order of preparation of financial statements? O Income statement statement of owner's equity balance sheet statement of cash flows Statement of owner's equity balance sheet income statement statement of cash flows O Balance sheet statement of owner's equity income statement statement of cash flows O Balance sheet income statement statement of owner's equity statement of cash flows D Question 15 3 pts As of December 31, 2016, Sunland Company has assets of $41,000 and owners equity of $21.500. What are the liabilities? $62,500 $21,500 $19,500 not enough information here to tell 13:02 Search Take Quiz Exit Question 16 3 pts Who are 2 external users of accounting data? user 1 user 2 Question 17 3 pts Saturn Company paid $10,000 on accounts payable. How does this transaction affect the accounting equation of Saturn? assets decrease by $10,000 and equity increases by $10,000 assets decrease by $10,000 and liabilities decrease by $10,000 assets increase by $10,000 and equity decreases by $10,000 assets increase by $10,000 and liabilities increase by $10,000 D Question 18 3 pts XYZ company collected $1,100 from a customer that was owed to them on accounts receivable. This has the following affect on the accounting equation increases an asset, decreases a liability decreases a liability, increases owners equity increases an asset, decreases a different asset decreases an asset, decreases a liability Question 19 8 pts ABC Roofing company had $17,000 in revenue for the month of July. They had expenses as follows: Salaries and Wages, $6,200 Rent, $850 , Vehicle Expenses, $975 Dave Smith, the owner of the company withdrew $1,000 of his initial investment in the business during July. What was the company's net income for the month? Question 20 8 pts Taylor Enterprises had a beginning capital balance of $172,890. At the end of the accounting period, the owners equity statement balance was $198,850. There were $0 capital withdrawals. What was the net income for that period