accounting sb 2

Which of the following correctly depicts the accounting equation?

Assets = Liabilities + Equity

Identify the expanded accounting equation from the options below.

Assets = Liabilities + Owner's Capital - Owner's Withdrawals + Revenues - Expenses

Given the statements below, choose the most accurate definition of owner withdrawals.

Assets an owner takes from the business for personal use

Identify the main sections on a statement of cash flows. (Check all that apply.)

Cash flows from operating activities Cash flows from financing activities Cash flows from investing activities

Given the statements below, choose the most accurate definition of owner investments.

Cash or other assets an owner puts into the business

The definition of expenses includes which of the following statements? (Check all that apply.)

Expenses are the costs necessary to earn revenue. Expenses decrease equity.

These activities provide the monies needed to pay for resources such as land and buildings.

Financing activities

Identify the three major types of business activities from the lists below.

Financing, Operating and Investing

These activities are the acquiring and disposing of assets that an organization uses in its business.

Investing activities

These activities are the every day activities that occur in running a business, selling a product or providing a service.

Operating activities

An income statement reports a company's net income or net loss during a period. Which of the following accounts would appear on an income statement?

Rent Revenue Rent Expense Service Revenue Wages Expense

The correct definition of revenues is:

Revenues increase equity and are earned from the sale of products and services.

The definition of revenues includes which of the following statements? (Check all that apply.)

Revenues increase equity. Revenues are the sales of products or services to customers by a business.

Identify the items below that reflect the proper heading on a balance sheet. (Check all that apply.)

The name of the financial statement is listed after the name of the company The date line shows a specific date The company name is listed at the top of the heading

Which of the statements correctly represents the accounting equation?

What a business owns will always equal what it owes to creditors and owners.

Buying and selling of long-term assets such as land and equipment would be included in the ______ activities section of the Statement of Cash Flows.

investing

Net income is calculated using the following formula:

revenues - expenses

True or False: The date line of a balance sheet depicts a specific day and not a period of time.

true

True or false: Owner withdrawals are resources taken from the business for personal use.

true