accounting 5

A corporation's net income is eventually recorded in the following stockholders' equity account: __________.

retained earnings

The accounting equation should remain in balance because every transaction affects how many accounts?

two or more

The company receives cash from a bank loan. assets- liabilities- owners equity-

assets- increase liabilities- increase owners equity- no effect

The owner invests personal cash in the business: assets- liabilities- owners equity-

Assets- Increase Liabilities- No Effect Owner's (or Stockholders') Equity-Increase

The owner withdraws cash from the business for personal use. assets- liabilities- owners equity-

assets- decrease liabilities- no effect owners equity- decrease

The financial statement with a structure that is similar to the accounting equation is the __________.

balance sheet

A corporation's quarterly __________ will cause a reduction in the corporation's retained earnings, which in turn reduces the corporation's stockholders' equity. However, this will not reduce the corporation's net income.

divinds

The financial statement that reports the portion of change in owner's equity resulting from revenues and expenses during a specified time interval is the __________.

income statement

Which of the following will cause owner's equity to decrease?

net loss

The basic accounting equation is Assets = Liabilities + __________.

owners equity