accounting chapter 8

assets and liabilities increase $4,300

if a company purchases equipment costing $4,300 on credit, the effect on the accounting equation would be:

assets and equity increase $11,100

if a company receives $11,100 from the owner to establish a proprietorship, the effect on the accounting equation would be:

$24,950

on may 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: cash $14,800; accounts receivable $6,950; supplies $500; equipment $11,550; accounts payable $8,850. what is the amount of equity as of may 31 of the current year?

business entity assumption

the accounting concept that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the:

managerial accounting

the area of accounting aimed at serving the decision-making needs of internal users is:

expense recognition (matching) principle

which of the following accounting principles prescribes that a company record its expenses incurred to generate the revenue reported?

measurement (cost) principle

which of the following accounting principles require that all goods and services purchased be recorded at actual cost?

all of the above

which of the following factors is not a component of the fraud triangle?

lender

which of the following is an external user of accounting information?

chief executive officer

which of the following is not an external user of accounting information?