FINAL (test 1 questions)
47. Accounts payable appear on which of the following statements? A) Balance sheet. B) Income statement. C) Statement of owner's equity. D) Statement of cash flows. E) Transaction statement.
A) Balance sheet.
43. If assets are $365,000 and equity is $120,000, then liabilities are: A) $120,000 B) $245,000 C) $365,000 D) $485,000 E) $610,000
B) $245,000
34. Assets created by selling goods and services on credit are: A) Accounts payable B) Accounts receivable C) Liabilities D) Expenses E) Equity
B) Accounts receivable
4. The private board that currently has the authority to establish generally accepted accounting principles is the: A) APB B) FASB C) AAA D) AICPA E) SEC
B) FASB
20. During the month of February, Hoffer Company had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What was the January 31 beginning cash balance? A) $700 B) $1,100 C) $2,900 D) $0 E) $4,300
C) $2,900
52. A company's balance sheet shows: cash $22,000, account receivable $16,000, office equipment $50,000, and accounts payable $17,000. What is the amount of stockholder's equity? A) $17,000 B) $29,000 C) $71,000 D) $88,000 E) $105,000
C) $71,000
34. Which of the following groups of accounts are not balance sheet accounts? A) Assets. B) Liabilities. C) Revenues. D) Equity accounts. E) All of the above are balance sheet accounts.
C) Revenues.
11. Of the following accounts, the one that normally has a credit balance is: A) Cash B) Office equipment C) Sales Salaries Payable D) Dividends E) Sales Salaries Expense.
C) Sales Salaries Payable
50. Determine the net income of a company for which the following information is available for the month of May. Employee salaries expense $180,000 Interest expense $10,000 Rent expense $20,000 Consulting revenue $400,000 A) $190,000 B) $210,000 C) $230,000 D) $610,000
A) $190,000
51. FastForward had cash inflows from operations $63,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash flows was: A) $41,500 increase. B) $40,500 decrease. C) $134,500 decrease. D) $134,500 increase. E) $9,500 increase.
A) $41,500 increase.
17. Resources owned or controlled by a company that are expected to yield benefits are: A) Assets B) Revenues C) Liabilities D) Owner's equity E) Expenses
A) Assets
13. If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is purchased for $137,000. What is the effect of the sale on the accounting equation for the seller? A) Assets increase $52,000; owner's equity increases $52,000 B) Assets increase $85,000; owner's equity increases $85,000 C) Assets increase $137,000; owner's equity increases $137,000 D) Assets increase $140,000; owner's equity increases $140,000 E) None of the above
A) Assets increase $52,000; owner's equity increases $52,000
41. If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets? A) Assets would have increased $55,000 B) Assets would have decreased $55,000 C) Assets would have increase $19,000 D) Assets would have decreased $19,000 E) None of the above
A) Assets would have increased $55,000
46. A financial statement providing information that helps users understand a company's financial status, and which lists the types and amounts of assets, liabilities, and equity as of a specific date, is called a(n): A) Balance sheet. B) Income statement. C) Statement of cash flows. D) Statement of owner's equity. E) Financial Status Statement.
A) Balance sheet.
15. Rocky Industries received its telephone bill in the amount of $300, and immediately paid it. Rocky's general journal entry to record this transaction will include a A) Debit to Telephone Expense for $300. B) Credit to Accounts Payable for $300. C) Debit to Cash for $300. D) Credit to Telephone Expense for $300. E) Debit to Accounts Payable for $300
A) Debit to Telephone Expense for $300.
31. Distributions of earnings by a corporation to its stockholders are called: A) Dividends. B) Expenses. C) Assets. D) Retained Earnings. E) Net Income.
A) Dividends.
40. If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have: A) Increased $22,000 B) Decreased $22,000 C) Increased $89,000 D) Decreased $156,000 E) Increased $156,000
A) Increased $22,000
2. A corporation: A) Is a legal entity separate and distinct from its owners. B) Is controlled by the FASB. C) Has shareholders who have unlimited liability for the acts for the acts of the corporation. D) Is the same as a limited liability partnership. E) All of the above.
A) Is a legal entity separate and distinct from its owners.
26. Net income: A) Occurs when revenues exceed expenses. B) Is the same as revenue. C) Equals resources owned or controlled by a company. D) Occurs when expenses exceed assets. E) Represents assets taken from a company for an owner's personal use.
A) Occurs when revenues exceed expenses.
31. A $15 credit to Sales was posted as a $150 credit. By what amount is Sales in error? A) $150 understated. B) $135 overstated. C) $150 overstated. D) $15 understated. E) $135 understated.
B) $135 overstated.
6. If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is purchased for $137,000, the land should be recorded in the purchaser's books at: A) $95,000 B) $137,000 C) $138,500 D) $140,000 E) $150,000
B) $137,000
19. On April 30, Holden Company had an Accounts Receivable balance of $18,000. During the month of May, total credits to Accounts Receivables were $52,000 from customer payments. The May 31 Accounts Receivable balance was $13,000. What was the amount of credit sales during May? A) $5,000 B) $47,000 C) $52,000 D) $57,000 E) $32,000
B) $47,000
28. If assets are $99,000 and liabilities are $32,000, then equity equals: A) $32,000 B) $67,000 C) $99,000 D) $131,000 E) $198,000
B) $67,000
12. If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is purchased for $137,000, the land should be recorded in the seller's books at: A) $85,000 increase B) $85,000 decrease C) $137,000 increase D) $137,000 decrease E) None of the above
B) $85,000 decrease
18. On September 30, the Cash account of Value Company had a normal balance of $5,000. During September, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of September? A) A $0 balance. B) A $4,300 debit balance. C) A $4,300 credit balance. D) A $5,700 debit balance. E) A $5,700 credit balance.
B) A $4,300 debit balance.
23. The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity is known as the: A) Income statement equation. B) Accounting equation. C) Business equation. D) Return on equity ratio. E) Net income.
B) Accounting equation.
35. Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation? A) Assets: $30,000 increase; liabilities: no effects; equity: $30,000 increase B) Assets: $30,000 decrease; liabilities: $30,000 decrease; equity: no effects C) Assets: $30,000 decrease; liabilities: $30,000 increase; equity: no effects D) Assets: no effects; liabilities: $30,000 decrease; equity: $30,000 increase E) Assets: $30,000 decrease; liabilities: no effects; equity: $30,000 decrease
B) Assets: $30,000 decrease; liabilities: $30,000 decrease; equity: no effects
5. The principle that requires every business to be accounted for separately and distinctly from its owner or owners is known as the: A) Objectivity principle B) Business entity principle C) Going-concern principle D) Revenue recognition principle E) Cost principle
B) Business entity principle
8. The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange is the: A) Accounting equation B) Cost principle C) Going-concern principle D) Realization principle E) Business entity principle
B) Cost principle
23. The process of transferring general journal information to the ledger is: A) Double-entry accounting. B) Posting. C) Balancing an account. D) Journalizing. E) Not required unless debits do not equal credits
B) Posting.
2. Which of the following statements is correct? A) When a future expense is paid in advance, the payment is normally recorded in a liability account called Prepaid Expense. B) Promises of future payment are called accounts receivable. C) Increases and decreases in cash are always recorded in the owner's equity account. D) An account called Land is commonly used to record increases and decreases in both the land and building owned by a business. E) Accrued liabilities include accounts receivable.
B) Promises of future payment are called accounts receivable.
18. Gross increases in equity from a company's earnings activities are: A) Assets B) Revenues C) Liabilities D) Owner's Equity E) Expenses
B) Revenues
14. Double-entry accounting is an accounting system: A) That records each transaction twice. B) That records the effects of transactions and other events in at least two accounts with equal debits and credit. C) In which each transaction affects is recorded in two or more accounts but that could include two debits and no credits. D) That may only be used if T-accounts are used. E) Is always an increase in an account
B) That records the effects of transactions and other events in at least two accounts with equal debits and credit.
19. Net income is: A) Assets minus liabilities. B) The excess of revenues over expenses. C) An asset. D) The same as revenue. E) The excess of expenses over equity.
B) The excess of revenues over expenses.
30. While in the process of posting from the journal to the ledger a company failed to post a $50 debit to the Office Supplies account. The effect of this error will be that: A) The Office Supplies account balance will be overstated. B) The trial balance will not balance. C) The error will overstate the debits listed in the journal. D) The total debits in the trial balance will be larger than the total credits. E) All of the above effects will be caused by the error.
B) The trial balance will not balance.
29. A report that lists accounts and their balances, in which the total debit balances should equal the total credit balances, is called a(n): A) Account balance. B) Trail balance. C) Ledger. D) Chart of accounts. E) General ledger.
B) Trail balance.
49. Use the following information as of December 31 to determine equity. Liabilities $141,000 Cash $57,000 Equipment $206,000 Buildings $175,000 A) $57,000 B) $141,000 C) $297,000 D) $438,000 E) $579,000
C) $297,000
22. Zed Bennett opened an art gallery and as a dealer completed these transactions: 1. Started the gallery, Artery, by investing $40,000 cash and equipment valued at $18,000. 2. Purchased $70 of office supplies on credit. 3. Paid $1,200 cash for the receptionist's salary. 4. Sold a painting for an artist and collected a $4,500 cash commission on the sale. 5. Completed an art appraisal and billed the client $200. What was the balance of the cash account after these transactions were posted? A) $12,230 B) $12,430 C) $43,300 D) $43,430 E) $61,430
C) $43,300
32. The assets of a company total $1,200,000; the liabilities, $700,000. What are the claims of the owners? A) $900,000 B) $700,000 C) $500,000 D) $200,000 E) It is impossible to determine unless the amount of this owners' investment is known
C) $500,000
53. A company reported total equity of $145,000 on its December 31, 2007 balance sheet. The following information is available for the year ended December 31, 2008: 2008 Revenues .$210,000 2008 Expenses 165,000 Liabilities, at Dec. 31, 2008 92,000 What are the total assets of the company at December 31, 2008? A) $45,000 B) $92,000 C) $98,000 D) $210,000 E) $282,000
C) $98,000
25. Expenses: A) Increase equity. B) Are gross increases in equity from a company's earning activity. C) Are the costs of assets or services used to earn revenues. D) Occur when equity exceeds revenue. E) Are creditors' claims on assets.
C) Are the costs of assets or services used to earn revenues.
14. If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is purchased for $137,000. At the time of the sale, assume that the seller still owed $30,000 to TrustOne Bank on the land that was purchased for $85,000. Immediately after the sale, the seller paid off the loan to TrustOne Bank. What is the effect of the sale and the payoff of the loan on the accounting equation? A) Assets increase $52,000; owner's equity increases $22,000; liabilities decrease $30,000 B) Assets increase $52,000; owner's equity increases $30,000; liabilities decrease $30,000 C) Assets increase $22,000; owner's equity increases $52,000; liabilities decrease $30,000 D) Assets decrease $30,000; owner's equity decreases $30,000; liabilities decrease $30,000 E) Assets decrease $55,000; owner's equity decreases $55,000; liabilities decrease $30,000
C) Assets increase $22,000; owner's equity increases $52,000; liabilities decrease $30,000
48. The income statement reports all of the following except: A) Revenues earned by a business. B) Expenses incurred by a business. C) Assets owned by a business. D) Net income or loss earned by a business. E) The time period over which the earnings occurred.
C) Assets owned by a business.
42. If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities and equity? A) Assets would decrease $38,000, liabilities would decrease $38,000 and equity would decrease $38,000 B) Assets would decrease $38,000, liabilities would decrease $38,000 and equity would increase $38,000 C) Assets would decrease $38,000, liabilities would decrease $42,000 and equity would not change D) There would be no effect on the accounts because the accounts are affected by the same amount. E) None of the above.
C) Assets would decrease $38,000, liabilities would decrease $42,000 and equity would not change
7. To include the personal assets and transactions of a business's owner in the records and reports of the business would be in conflict with the: A) Objectivity principle B) Realization principle C) Business entity principle D) Going-concern principle E) Revenue recognition principle
C) Business entity principle
17. Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business, RH Consulting Inc. Which of the following journal entries will RH Consulting make to record this transaction? A) Assets $200,000 Common Stock $200,000 B) Cash and Land $200,000 Common Stock $200,000 C) Cash $70,000 Land $130,000 Common Stock $200,000 D) Common Stock $200,000 Assets $200,000 E) Common Stock $200,000 Assets $200,000
C) Cash $70,000 Land $130,000
11. Which of the following accounting principles would requires that all goods and services purchased be recorded at cost? A) Going-concern principle B) Continuing-concern principle C) Cost principle D) Business entity principle E) Consideration principle
C) Cost principle
9. The Maximum Experience Company acquired a building for $500,000. Maximum Experience had an appraisal done and found that the building was easily worth $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would require Maximum Experience to record the building on its records at $500,000? A) Monetary unit principle B) Going-concern principle C) Cost principle D) Business entity principle E) Revenue recognition principle
C) Cost principle
6. The right side of a T-account is a(n): A) Debit. B) Increase. C) Credit. D) Decrease. E) Account balance.
C) Credit.
13. A credit entry: A) Increases asset and expense accounts, and decreases liability, common stock, and revenue accounts. B) Is always a decrease in an account C) Decreases asset and expense accounts, and increases liability, common stock, and revenue accounts. D) Is recorded on the left side of a T-account. E) Is always an increase in an account
C) Decreases asset and expense accounts, and increases liability, common stock, and revenue accounts.
20. The difference between a company's assets and its liabilities, or net assets is: A) Net income B) Expense C) Equity D) Revenue E) Net loss
C) Equity
24. The record in which transactions are first recorded is the: A) Account balance. B) Ledger. C) Journal. D) Trial balance. E) Cash account.
C) Journal.
26. A record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n): A) Account. B) Trail balance. C) Journal. D) T-account. E) Balance column account.
C) Journal.
29. The excess of expenses over revenues for a period is: A) Net assets. B) Equity. C) Net loss. D) Net income. E) A liability.
C) Net loss.
33. A $130 credit to Office Equipment was credited to Service Revenue by mistake. By what amounts are the accounts under- or overstated as a result of this error? A) Office Equipment, understated $130; Service Revenue, overstated $130. B) Office Equipment, understated $260; Service Revenue, overstated $130. C) Office Equipment, overstated $130; Service Revenue, overstated $130. D) Office Equipment, overstated $130; Service Revenue, understated $130. E) Office Equipment, overstated $260; Service Revenue, understated $130.
C) Office Equipment, overstated $130; Service Revenue, overstated $130.
10. An account balance is: A) The total of the credit side of the account. B) The total of the debit side of the account. C) The difference between the total debits and the total credits for an account including the beginning balance. D) Assets= liabilities + equity E) Always a credit.
C) The difference between the total debits and the total credits for an account including the beginning balance.
9. Which of the following statements is correct? A) The left side of a T-account is the credit side. B) Debits decrease asset and expense accounts, and increase liability, equity, and revenue accounts. C) The left side of the t-account is the debit side. D) Credits increase asset and expense accounts, and decrease liability, equity and revenue accounts. E) In certain circumstances the total amount debited need not equal the total amount credited for a particular transaction.
C) The left side of the t-account is the debit side.
32. The credit purchase of a delivery truck for $4,700 was posted to Delivery Truck as a $4,700 debit and to Accounts Payable as a $4,700 debit. What effect would this error have on the trial balance? A) The total of the Debit column of the trial balance will exceed the total of the Credit column by $4,700. B) The total of the Credit column of the trial balance will exceed the total of the Debit column by $4,700. C) The total of the Debit column of the trial balance will exceed the total of the Credit column by $9,400. D) The total of the Credit column of the trial balance will exceed the total of the Debit column by $9,400.
C) The total of the Debit column of the trial balance will exceed the total of the Credit column by
45. A balance sheet lists: A) The types and amounts of the revenues and expenses of a business. B) Only the information about what happened to equity during a time period. C) The types and amounts of assets, liabilities, and equity of a business as of a specific date. D) The inflows and outflows of cash during the period. E) The assets and liabilities of a company but not the owner's equity.
C) The types and amounts of assets, liabilities, and equity of a business as of a specific date.
38. Viscount Company collected $42,000 cash on its accounts receivable. The effects of this transaction as reflected in the account equation are: A) Total assets decrease and equity increases. B) Both total assets and equity decrease. C) Total assets, total liabilities and equity are unchanged. D) Both total assets and equity are unchanged and liabilities increase. E) Total assets increase and equity decreases.
C) Total assets, total liabilities and equity are unchanged.
33. On June 30 of the current year, the assets and liabilities of Phoenix Phildell are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of stockholders' equity as of July 1 of the current year? A) $8,300 B) $13,050 C) $20,500 D) $31,100 E) $40,400
D) $31,100
16. If equity is $300,000 and liabilities are $192,000, then assets equal: A) $108,000 B) $192,000 C) $300,000 D) $492,000 E) $792,000
D) $492,000
36. How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed? A) +$10,000 accounts receivable, -$10,000 accounts payable B) +$10,000 accounts receivable, +$10,000 accounts payable C) +$10,000 accounts receivable, +$10,000 cash D) +$10,000 accounts receivable, +$10,000 revenue E) +$10,000 accounts receivable, -$10,000 revenue
D) +$10,000 accounts receivable, +$10,000 revenue
1. Businesses can take the following form(s): A) Sole Proprietorship B) Common stock C) Partnership D) A and C only E) All of the above
D) A and C only
1. A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a(n): A) Journal. B) Posting. C) Trail balance. D) Account. E) Chart of accounts.
D) Account.
44. The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called: A) A balance sheet. B) A statement of owner's equity. C) A statement of cash flows. D) An income statement E) A statement of financial position.
D) An income statement
10. Marian Mosely is the owner of Mosely Accounting Services. Which accounting principle requires Marian to keep her personal financial information separate from the financial information of Mosely Accounting Services? A) Monetary unit principle B) Going-concern principle C) Cost principle D) Business entity principle E) None of these. Since Marian is a sole proprietor, she is not required to separate her personal financial information from the financial information of Mosely Accounting Services.
D) Business entity principle
16. Wisconsin Rentals purchased office supplies on credit. The general journal entry made by Winconsin Rentals will include a: A) Debit to Accounts Payable. B) Debit to Accounts Receivable. C) Credit to Cash. D) Credit to Accounts Payable. E) Credit to Common Stock
D) Credit to Accounts Payable.
21. If Tim Jones, the owner of Jones Hardware proprietorship, uses cash of the business to purchase a family automobile, the business should record this use of cash with an entry to: A) Debit Salary Expense and credit Cash. B) Debit Tim Jones, Salary and credit Cash. C) Debit Cash and credit Tim Jones, Withdrawals. D) Debit Tim Jones, Withdrawals and credit Cash. E) Debit Automobile and credit Cash.
D) Debit Tim Jones, Withdrawals and credit Cash.
22. Decreases in equity that represent costs of assets or services used to earn revenues are called: A) Liabilities B) Equity C) Withdrawals D) Expenses E) Owner's investment
D) Expenses
39. If the liabilities of a business increased $75,000 during a period of time and the owner's equity in the business decrease $30,000 during the same period, the assets of the business must have: A) Decreased $105,000 B) Decreased $45,000 C) Increased $30,000 D) Increased $45,000 E) Increased $105,000
D) Increased $45,000
15. Net Income: A) Decreases equity. B) Represents the amount of assets owners put into a business C) Equals assets minus liabilities D) Is the excess of revenues over expenses. E) Represents owners' claims against assets.
D) Is the excess of revenues over expenses.
3. A written promise to pay a definite sum of money on a specific future date is a(n): A) Unearned revenue. B) Prepaid expense. C) Credit account. D) Note payable. E) Account receivable.
D) Note payable.
27. Revenues are: A) The same as net income. B) The excess of expenses over assets. C) Resources owned or controlled by a company. D) The gross increase in equity from a company's earning activities. E) The costs of assets or services used.
D) The gross increase in equity from a company's earning activities.
7. Which of the following statements is incorrect? A) The normal balance of accounts receivable is a debit. B) The normal balance of owner's withdrawals is a debit. C) The normal balance of unearned revenues is a credit. D) The normal balance of an expense account is a credit. E) The normal balance of the owner's capital account is a credit.
D) The normal balance of an expense account is a credit.
5. A ledger is: A) A record containing increases and decreases in a specific asset, liability, equity, revenue, or expense item. B) A journal in which transactions are first recorded. C) A collection of documents that describe transactions and events entering the accounting process. D) A list of all accounts with their debit balances at a point in time. E) A record containing all accounts and their balances used by a company.
E) A record containing all accounts and their balances used by a company.
25. The general journal provides a place for recording: A) The transaction date. B) The names of the accounts involved. C) The amount of each debit and credit. D) An explanation of the transaction. E) All of the above.
E) All of the above.
3. The rules adopted by the accounting profession as guides in preparing financial statements are: A) Comprised of both general and specific principles. B) Known as generally accepted accounting principles. C) Abbreviated as GAAP. D) Intended to make information in financial statements relevant, reliable, and comparable. E) All of the above.
E) All of the above.
30. Which of the following statements is true about assets? A) They are economic resources owned or controlled by the business. B) They are expected to provide future benefits to the business. C) They appear on the balance sheet. D) Claims on them are shared between creditors and owners. E) All of the above.
E) All of the above.
8. A credit is used to record: A) A decrease in an expense account. B) A decrease in an asset account. C) An increase in an unearned revenue account. D) An increase in a revenue account. E) All of the above.
E) All of the above.
12. A debit is used to record: A) A decrease in an asset account. B) A decrease in an expense account. C) An increase in a revenue account. D) An increase in the balance of the common stock account. E) An increase in the balance of the dividends account.
E) An increase in the balance of the dividends account.
37. Zion Company has assets of $500,000, liabilities of $250,000 and equity of $250,000. It buys office equipment on credit for $75,000. The effects of this transaction include: A) Assets increase by $75,000 and expenses increase by $75,000 B) Assets increase by $75,000 and expenses decrease by $75,000 C) Liabilities increase by $75,000 and expenses decrease by $75,000 D) Assets decrease by $75,000 and expenses decrease by $75,000 E) Assets increase by $75,000 and liabilities increase by $75,000
E) Assets increase by $75,000 and liabilities increase by $75,000
28. An accountant has debited an account for $3,500 and credited a liability account for $2,000. Which of the following would be an incorrect way to complete the recording of this transaction: A) Credit another asset account for $1,500. B) Credit another liability account for $1,500. C) Credit an expense account for $1,500. D) Credit the common stock account for $1,500. E) Debit another asset account for $1,500.
E) Debit another asset account for $1,500.
4. A collection of all accounts and their balances used by a business is called a: A) Journal. B) Book of original entry. C) General column journal. D) Balance column journal. E) Ledger.
E) Ledger.
21. Creditors' claims on the assets of a company are called: A) Net losses. B) Expenses. C) Revenues. D) Equity. E) Liabilities.
E) Liabilities.
