Analyzing Business Transactions

If there is an excess of expenses over revenues, the excess represents a profit. True or False?

False

When cash is collected from accounts receivable, the total amount of assets increases. True or False?

False

Withdrawals by the owner are reported on the income statement. True or False?

False

The total amount of Liabilities doesn't include: A) Accounts Payable B) Accrued Payroll C) Inventory D) Notes Payable

Inventory.

When using the fundamental accounting equation, an accountant must make sure that total assets are always equal to total liabilities and owner's equity. True or False?

True

The rent paid for future months is a(n):

asset.

When the owner writes a check to pay the firm's electric bill:

assets decrease and expenses increase.

Examples of assets are

cash and accounts receivable.

Owner's equity is:

the financial interest of the owner of a business.

The income statement shows:

the results of operations for a period of time.