AC 211 exam 1

All of the following would be classified as current on a classified balance sheet except: -Accounts Payable. -Common Stock. -Supplies. -Cash.

common stock

When a deferral adjustment is made to a liability account, that liability becomes a(n): -expense. -asset. -other liability. -Revenue.

Revenue

Amounts earned by selling goods or services to customers are called:

Revenues

True or false: Borrowing money from a bank is a financing activity on the statement of cash flows.

True

True or false: Cash paid for wages is an example of an operating activity on the statement of cash flows.

True

Alpha sold $2,000 of services to Beta on credit. Beta promised to pay for it next month. Beta will report a $2,000:

accounts payable

Which account is affected by recording the buying of goods on credit? -Cash -Retained Earnings -Common Stock -Accounts Payable

accounts payable

An economic resource that is controlled by a company and will provide future benefits is referred to as:

an asset

Transactions are entered into a ____________ each day they occur. -trial balance -journal -ledger -classified balance sheet

journal

Considering the targeted audience for financial accounting reports, which of the following parties below is not an external user?

managers of the company issuing reports

In accordance with the expense recognition principle, expenses are recorded in the period when the: -cash is paid. -related assets are recorded. -contract and performance obligations are identified. -related revenues are recorded.

related revenues are recorded

Broadway, Incorporated's trial balance was in balance at the end of the period and showed the following accounts: Account Balance Accounts Payable $30,600 Cash 62,100 Common Stock 30,000 Equipment 13,500 Land 45,000 Notes Payable 60,000 What is the balance of the credit column on Broadway's trial balance?

$120,600 (Adding the credits: 30,600 + 30,000 + 60,000 = $120,600)

A company's financial records at the end of the year included the following amounts: Cash $ 71,000 Accounts Receivable 29,000 Supplies 5,000 Accounts Payable 11,000 Notes Payable 5,500 Retained Earnings, beginning of year 18,000 Common Stock 50,000 Service Revenue 46,500 Wages Expense 9,000 Advertising Expense 6,000 Rent Expense 11,000 What is the amount of net income on the Income Statement for the year?

$20,500 -Service revenue - wages expense -advertising expense - rent expense = net income (46,500 - 9,000 - 6,000 - 11,000 = $20,500)

During January 2020, the first month of operations, a consulting firm had the following transactions: Issued common stock to owners in exchange for $16,000 cash. Purchased $4,000 of equipment, paying $800 cash and signing a promissory note for $3,200. Received $7,200 in cash for consulting services performed in January. Purchased $1,200 of supplies on account; all of the supplies were used in January. Provided consulting services on account in the amount of $12,800 but have not yet received cash from these customers. Paid $600 on account. Paid $2,400 to employees for work performed during January. Received a bill for utilities for January of $2,700; the bill remains unpaid. What is the amount to be reported as total liabilities on the balance sheet at the end of January?

$6,500 (Purchase on account - payments on account) + unpaid utility bill = accounts payable (1200 - 600) + 2700 = 3,300 Total liabilities = accounts payable + notes payable 3,300 + 3,200 = 6,500

Spin Company has $52,000 in its Cash account, $20,000 in its Inventory account, and $12,000 in its Notes Payable (short-term) account. If Spin's only other account is Common Stock, what is the balance of that account?

$60,000 (52,000 + 20,000 - 12,000 = $60,000)

TreeTop Nursery sold $7,500 of goods to customers of which $4,500 has been collected. TreeTop should report revenues of:

$7,500

Amounts owed to suppliers for goods purchased on credit are called: -Accounts Payable. -Inventory. -Retained Earnings. -Common Stock.

Accounts payable

Which of the following would be listed as a current liability? -Accounts Payable -Cash -Supplies -Notes Payable (due in two years)

Accounts payable

Net income is the amount:

By which revenues exceed expenses

The following account balances are taken from the December 31, 2020, financial statements of ABZ Advertising Company. The company uses accrual basis accounting. Advertising Revenue $ 46,482 Cash 41,516 Accounts Receivable 7,296 Interest Expense 2,299 Accounts Payable 5,000 Operating Expenses 37,460 Deferred Revenue 1,178 Equipment 18,048 Income Tax Expense 2,326 The following activities occurred in 2021: Performed advertising services on account, $55,000. Received cash payments on account, $10,400. Received deposits from customers for advertising services to be performed in 2022, $2,500. Made payments to suppliers on account, $5,000. Incurred $45,000 of operating expenses; $39,000 was paid in cash and $6,000 was on account and unpaid as of the end of the year. Which of the following is the journal entry that will be used to record activity #4? -Debit Accounts Payable and credit Operating Expense for $5,000 -Debit Operating Expense and credit Cash for $5,000 -Debit Accounts Payable and credit Cash for $5,000 -Debit Cash and credit Accounts Payable for $5,000

Debit accounts payable and credit cash for $5,000

A difference between debt financing and equity financing is that: -debt financing must be repaid, while repayment of equity financing is not required. -equity financing must be repaid, while repayment of debt financing is not required. -only debt financing can be used to purchase assets. -only equity financing can be used to purchase assets.

Debt financing must be repaid, while repayment of equity financing is not required

The unadjusted trial balance is a key starting point for the adjustment process. Which of the following accounts is likely to be directly affected by an adjusting entry? -Deferred Revenue -Common Stock -Cash -Retained Earnings

Deferred Revenue

Which of the following accounts has a normal credit balance? -Utilities Expense -Equipment -Deferred Revenue -Accounts receivable

Deferred revenue

During its year ended December 31, 2021, Ocean Consulting had the following transactions with its clients (customers): On February 1, 2021, the company received cash of $5,700 from clients in payment of their account balances as of December 31, 2020. On November 1, 2021, the company received $2,700 cash as payments in advance for services to be performed in 2022. The company received a total of $16,500 in cash for services that were performed during 2021. The company sent bills totaling $4,700 to clients for services performed during 2021; this amount was unpaid as December 31, 2021. As a result of these transactions during 2021, the firm's stockholders' equity will: -increase by $29,600. -increase by $21,200. -decrease by $26,900. -decrease by $23,900.

Increase by $21,200 14,000+4,200

Which of the following statements about the debit/credit framework is correct? -When payment is made on a liability such as accounts payable, the liability account is decreased with a debit. -All asset accounts have a normal debit balance with the exception of cash, which has a normal credit balance. -The total amount of asset accounts must equal the total amount of liability accounts minus the total amount of stockholders' equity accounts. -The Common Stock account is increased by debits.

When payment is made on a liability such as accounts payable, the liability account is decreased with a debit

An expense: -will be increased with a credit to the account. -normally has a credit balance. -will decrease the amount of net income on the income statement. -will decrease the amount of Common Stock on the balance sheet.

Will decrease the amount of net income on the income statement

Which of the following statements is correct regarding the use of the Cash account in deferral and accrual adjustments at the end of the accounting period? -Transactions involving cash are often included in both accrual and deferral -adjustments at the end of the accounting period. -The Cash account can only be used in an accrual adjustment, but not in a deferral adjustment. -The Cash account can only be used in a deferral adjustment, but not in an accrual adjustment. -Cash is never involved in end-of-period deferral or accrual adjustments.

cash is never involved in end of period deferral or accrual adjustments

Financing that individuals or institutions have provided to a corporation is: -classified as a stockholders' equity when provided by creditors and a liability when provided by owners. -classified as a liability when provided by creditors and as stockholders' equity when provided by owners. -always classified as a liability. -always classified as equity.

classified as a liability when provided by creditors and as stockholders' equity when provided by owners.

If revenues are less than expenses, the company's Retained Earnings:

decreases

How do debits appear in a T-account? -They are always listed on the left side of the account. -They are always listed on the right side of the account. -They are listed on the left side for asset accounts, but listed on the right side for liabilities and stockholders' equity accounts. -They are listed on the right side for asset accounts, but listed on the left side for liabilities and stockholders' equity accounts.

they always appear on the left side of the account

How do credits appear in a T-account? -They are listed on the right side for asset accounts, but listed on the left side for liabilities and stockholders' equity accounts. -They are always listed on the left side of the account. -They are always listed on the right side of the account. -They are listed on the left side for asset accounts, but listed on the right side for liabilities and stockholders' equity accounts.

they are always listed on the right side of the account

Which of the following is a report for internal use only? -Trial balance -Statement of financial position -Balance sheet -Classified balance sheet

trial balance

True or false: creditors are owners of corporations

true

Which of the following statements about accrual basis accounting is not correct? -It requires the timing of cash receipts be in the same period as revenues are recognized. -It uses the expense recognition principle. -It is required for external accounting reports. -It uses the revenue recognition principle.

It requires the timing of cash receipts be in the same period as revenues are recognized

Deferred Revenue is a(n): -expense. -revenue. -asset. -Liability.

Liability

Amortization is the expensing of: -equipment and buildings. -land. -long-term assets that lack physical substance. -Supplies.

Long term assets that lack physical substance

Which line item is reported on both the income statement and statement of retained earnings? -Revenues -Net income -Dividends -Expenses

Net income

Which of the following is not a specific account in a company's chart of accounts? -Income tax expense -Sales Revenue -Net Income -Deferred Revenue

Net income

Candy Cane's ice cream shop, which opened in June, is a local hit. In July, Candy Cane hired a new employee at a rate of $1,200 per month to start work at the beginning of August. In July, Candy Cane should record: -a $1,200 increase to Wage Expense and a $1,200 decrease to Cash. -a $1,200 increase to Prepaid Wages and a $1,200 decrease to Cash. -a $1,200 increase in Wages Payable and a $1,200 increase in Wages Expense. -nothing, because an exchange of promises is not a transaction.

Nothing because an exchange of promises is not a transaction

A contra account: -reduce the asset to its fair value. -offsets, or reduces, another account. -always appears in the same column of the trial balance as the account to which it relates. -increases the original value of the account to which it relates.

Offsets, or reduces, another account

Which of the following is an operating activity? -Paying a dividend to owners -Purchasing a new building -Purchasing goods to be offered for sale -Repaying a bank loan

Purchasing goods to be offered for sale

Which of the following accounts does not have a normal credit balance? -Accounts Payable -Service Revenue -Deferred Revenue -Prepaid Rent

Prepaid rent

Which of the following would not be reported as an asset on the balance sheet?

Retained earnings

True or false: Accounts Payable, Notes Payable, and Salaries and Wages Payable are examples of liabilities.

True

Which of the following is the usual last step in the accounting cycle? -Preparing the adjusted trial balance. -Preparing a post-closing trial balance. -Preparing an unadjusted trial balance. -Preparing the financial statements.

Preparing a post-closing trial balance

First Corporation had Retained Earnings at the end of December 31, 2022 of $900,000. During 2023, the company had net income of $340,000 and declared dividends of $40,000. The amount of Retained Earnings reported on the balance sheet as of December 31, 2023 will be:

$1,200,000 Ending retained earnings = beginning retained earnings +net income - dividends 900,000 + 340,000 - 40,000 = 1,200,000

The Smith Corporation began business this year and entered into the following transactions during the year. The company issued common stock in exchange for cash of $80,000 from stockholders, borrowed $40,000 from a bank, bought $12,000 of inventory on account, and purchased $32,000 of equipment by paying $12,000 in cash and issuing a note for the remainder. What is the amount of total liabilities to be reported on the balance sheet at the end of the year?

$72,000 Total liabilities = 40,000 + 12,000 + 20,000 = 72,000 (Got 20,000 by doing 32,000 - 12,000)

The following transactions occurred during July: 1. Received $1,700 cash for services performed during July. 2. Received $8,150 cash from the issuance of common stock to owners. 3. Received $850 from a customer as payment for services performed during June. 4. Billed $4,850 to customers for services performed on account in July but received no cash from them. 5. Borrowed $3,400 from the bank and signed a promissory note. 6. Received $2,350 from a customer for services to be performed during August. As a result of these transactions, what is the amount of the increase to the Cash account? -$4,900 -$10,800 -$21,300 -$16,450

16,450 -Increase in cash = cash for services performed + issuance of common stock + cash fromcash from receivable of june + borrowing + deferred revenue of august (1700 + 8150 + 850 + 3400 + 2350)

Constable Company reported the following information at December 31, Year 1: Accounts Payable $ 4,540 Accounts Receivable 9,390 Cash 23,890 Common Stock 90,400 Equipment 49,900 Inventory 31,600 Notes Payable due December 31, Year 3 2,540 Retained Earnings, December 31, Year 1 14,130 Wages Payable 3,170 What is the amount of current assets on the classified balance sheet?

64,880 -Cash + accounts receivable + inventory = current assets for this problem (equipment not current asset)

Which of the following statements about adjusting entries is not correct? -Adjustments help to ensure the related accounts on the balance sheet and income statement are up to date and complete. -Adjustments are needed to ensure that the accounting system includes all of the revenues and expenses of the period. -Adjusting entries often affect the cash account. -Adjusting entries always include one balance sheet and one income statement account.

Adjusting entries often affect the cash account

How does the timing of adjusting entries differ from the accounting for daily transactions? -Adjustments are made at the end of the accounting period because making them on a daily basis would be inefficient. -Adjustments are made throughout the accounting period as information becomes available. -Adjustments are made at the beginning of the accounting period to ensure accuracy is maintained during the cycle. -Adjustments are made at the discretion of management and are not necessary for each accounting period.

Adjustments are made at the end of the accounting period because making them on a daily basis would be inefficient

After the adjustments have been completed, the adjusted balance in Deferred Revenue represents the: -total cash received during the period from the sale of goods or services. -amount of the sales or services still owed to the customer. -amount of revenues earned during the current period. -amount of revenues that have been earned, but not collected during the period

Amount of the sales or services still owed to the customer

Which of the following best describes when an accrual adjustment is required? -An expense has not been incurred, but cash has been paid. -An expense has not been incurred nor has it been paid in cash. -An expense has been incurred but not yet paid in cash. -An expense has been incurred and paid in cash.

An expense has been incurred but not yet paid in cash

The following are the operational transactions related to Melody's Piano School for the month of May: Provided $1,250 of piano lessons to students who paid in cash. Provided $980 of piano lessons on account. Collected $735 from students who took piano lessons during April. Paid April's piano rental bill of $550. Received May's piano rental bill of $600 and set it aside for payment in June. Assuming the company uses accrual basis accounting, what is net income for May?

Answer: $1,630 Net income = cash revenue + credit revenue - rental bill 1250 + 980 - 600 = 1630

The following transactions occurred during July, the entity uses accrual accounting: Received $850 cash for services performed during July. Received $5,200 cash from the issuance of common stock to owners. Received $425 from a customer as payment for services performed during June. Billed $3,650 to customers for services performed on account in July but received no cash from them. Borrowed $2,500 from the bank and signed a promissory note. Received $1,075 from a customer for services to be performed during August. What is the amount of revenue that will be reported on the income statement for the month ended July 31?

Answer: $4,500 Cash for services performed in july + billed to customers for services performed in july (850 +3650)

First Corporation had Retained Earnings at the end of December 31, 2022 of $468,000. During 2023, the company had net income of $188,000 and declared dividends of $21,800. The amount of Retained Earnings reported on the balance sheet as of December 31, 2023 will be:

Answer: $634,200 Beginnings retained earnings + net income - dividends paid 468,000 +188,000 - 21,800

During January 2020, the first month of operations, a consulting firm had the following transactions: Issued common stock to owners in exchange for $16,000 cash. Purchased $4,000 of equipment, paying $800 cash and signing a promissory note for $3,200. Received $7,200 in cash for consulting services performed in January. Purchased $1,200 of supplies on account; all of the supplies were used in January. Provided consulting services on account in the amount of $12,800 but have not yet received cash from these customers. Paid $600 on account. Paid $2,400 to employees for work performed during January. Received a bill for utilities for January of $2,700; the bill remains unpaid. What is the amount of total revenue to be reported on the income statement for the month of January?

Answer: 20,000 7,200 + 12,800

Bolt Enterprises receives $100,000 cash from its customers on account. Bolt uses the cash to pay off $100,000 on a bank loan, the net result is that: -liabilities would decrease by $100,000 while stockholders' equity would increase by $100,000. -assets would decrease by $100,000 and liabilities would decrease by $100,000. -liabilities would decrease by $100,000 and stockholders' equity would decrease by $100,000. -assets would increase by $100,000 while liabilities would decrease by $100,000.

Assets would decrease by $100,000 and liabilities would decrease by $100,000

Adjusting entries are typically prepared: -on a daily basis. -at the end of the accounting period -at the beginning of the accounting period. -on a weekly basis.

At the end of the accounting period

A company receives $100,000 cash from investors in exchange for stock. Several weeks later, the company buys a $250,000 machine using all of the cash from the stock issue and signing a promissory note for the remainder. The accounts involved in these two transactions are: -Cash; Equipment; Common Stock; and Notes Payable. -Cash; Equipment; Noncurrent Investments; and Accounts Payable. -Cash; Noncurrent Investments; Common Stock; and Notes Payable. -Equipment; Notes Payable; and Retained Earnings.

Cash ; equipment; common stock; and notes payable

During March, Seconds Best Company had cash sales of $35,000 and sales on account of $210,000. In April, payments received on account totaled $175,000. The journal entry prepared by Seconds Best to record the March sales would include a debit to: -Cash for $35,000, debit to Accounts Payable for $210,000, and credit to Sales Revenue for $245,000. -Cash for $35,000, debit to Deferred Revenue for $210,000, and credit to Sales Revenue for $245,000. -Cash and credit to Sales Revenue for $35,000. -Cash for $35,000, debit to Accounts Receivable for $210,000, and credit to Sales Revenue for $245,000.

Cash for $35,000, debit to Accounts Receivable for $210,000, and credit to Sales Revenue for $245,000.

The following account balances are taken from the December 31, 2020, financial statements of ABZ Advertising Company. The company uses accrual basis accounting. Advertising Revenue $ 46,482 Cash 41,516 Accounts Receivable 7,296 Interest Expense 2,299 Accounts Payable 5,000 Operating Expenses 37,460 Deferred Revenue 1,178 Equipment 18,048 Income Tax Expense 2,326 The following activities occurred in 2021: Performed advertising services on account, $55,000. Received cash payments on account, $10,400. Received deposits from customers for advertising services to be performed in 2022, $2,500. Made payments to suppliers on account, $5,000. Incurred $45,000 of operating expenses; $39,000 was paid in cash and $6,000 was on account and unpaid as of the end of the year. Which of the following is the journal entry that will be used to record activity #1? -Debit Accounts Receivable and credit Advertising Revenue for $55,000 -Debit Advertising Revenue and credit Accounts Receivable for $55,000 -Debit Cash and credit Advertising Revenue for $55,000 -Debit Accounts Receivable and credit Cash for $55,000

Debit Accounts Receivable and credit Advertising Revenue for $55,000

Broadmor Industries collected $7,500 from a customer on account. What journal entry will be prepared by Broadmor to record this transaction? -Debit Accounts Receivable and credit Service Revenue. -Debit Accounts Receivable and credit Cash. -Debit Cash and credit Accounts Receivable. -Debit cash and credit service revenue

Debit cash and credit accounts receivable

The process of allocating the cost of buildings, vehicles, and equipment to the accounting periods in which they are used is called: -accumulated allocation. -deferred revenue. -prepaid expense. -Depreciation.

Depreciation

Why is the balance in the Depreciation Expense account generally different from the balance in the Accumulated Depreciation account? -The Accumulated Depreciation account contains the value of the long-lived asset as well as the depreciation. -The adjusting entry contains a different amount for Depreciation Expense and Accumulated Depreciation. -Depreciation expense only reflects the current period depreciation. Accumulated Depreciation contains depreciation since the asset was purchased. -The balances in the two accounts should be the same amount.

Depreciation expense only reflects the current period depreciation. Accumulated depreciation contains depreciation since the asset was purchased

Which of the following is not an expense? -Wages of employees -Interest incurred on a notes payable -Dividends -Corporate income tax

Dividends

If Blair Industries had $22 million in revenue and net income of $8 million, then its: -Expenses must have been 14 million -Expenses must have been 30 million -Assets must have been 8 million -Assets must have been 22 million

Expenses must have been 14 million

Amortization is the concept that applies to the: -recording of Deferred revenue in the period cash is collected in advance of being earned. -recording of amounts collected in advance that have not yet been earned. -depreciation of prepaids and supplies as they are used. -expensing of long-term assets that lack physical substance over their useful lives.

Expensing of long-term assets that lack physical substance over their useful lives

Which of the following statements is correct? -Financial statements are prepared after adjustments to ensure that all accounts have been brought to their correct balance. -Financial statements are prepared before adjustments to ensure that all accounts have been brought to their correct balance. -Financial statements are prepared before adjustments to ensure that debits equal credits before concluding the adjustment process. -Financial statements are prepared before adjustments to ensure that debits equal credits before beginning the adjustment process.

Financial statements are prepared after adjustments to ensure that all accounts have been brought to their correct balance

Expenses are recorded on the:

Income statement in the time period in which they are incurred

Which of the following statements about the income statement is correct? -Dividends are listed on the income statement. -The income statement is prepared after the balance sheet. -Revenues are listed before expenses on the income statement. -Expenses are listed before revenues on the income statement.

Revenues are listed before expenses on the income statement

Accounts Receivable should be increased for: -inventory purchased during the period but not yet paid. -cash collected from customers for revenues earned during the period. -revenues earned during the period but not yet collected. -cash collected from customers in advance of being earned.

Revenues earned during the period but not yet collected

This month, a company performed $530,000 of services and incurred total expenses of $439,300. The company was paid in cash for all its services and paid cash for all its expenses. These transactions would cause: -cash to increase by $530,000, expenses to increase by $439,300, and common stock to increase by $90,700. -revenues to increase by $530,000, expenses to increase by $439,300, and cash to increase by $90,700. -revenues to increase by $530,000, expenses to increase by $439,300, and retained earnings to decrease by $90,700. -revenues to increase by $90,700, expenses to increase by $439,300, and cash to increase by $530,000.

Revenues to increase by 530,000, expenses to increase by 439,300, and cash to increase by 90,700

Which of the following expressions of the accounting equation is correct? -Assets = Liabilities − Stockholders' Equity -Stockholders' Equity = Assets − Liabilities -Stockholders' Equity + Assets = Liabilities -Liabilities + Assets = Stockholders' Equity

Stockholders equity = Assets - liabilities

Power Enterprises uses accrual basis accounting. During its first month of business, October, the company recorded sales revenue of $150,000 from sales of goods to customers who promised to pay in November. During November, the company received payment from these customers of $135,000. No other transactions with customers took place during these two months. Which of the following statements is correct? -The Accounts Payable account has a balance of $15,000 at October 31. -The Sales Revenue account will have a $135,000 balance at October 31. -The Sales Revenue account will have a $135,000 balance at November 30. -The Accounts Receivable account has a balance of $15,000 at November 30.

The accounts receivable account has a balance of $15,000 at november 30th

The Flynn Company started business by obtaining financing through debt financing and equity financing. Which of the following statements is not correct? -The business is obligated to report debt financing -Equity financing refers to the money obtained through owners' contributions and reinvestments of profit -The business is obligated to repay equity financing -Debt financing refers to the money obtained through loans

The business is obligated to repay equity financing

A company started the year with a normal balance of $136,000 in the Inventory account. During the year, debits totaling $90,000 and credits totaling $110,000 were posted to the Inventory account. Which of the following statements about the Inventory account is correct? -The Inventory account is decreased by debits. -The debits and credits posted to the Inventory account caused it to decrease by $20,000. -After these amounts are posted, the balance in the Inventory account is a credit balance of $116,000. -The normal balance of the Inventory account is a credit balance.

The debits and credits posted to the inventory account caused it to decrease by $20,000 (110,000 - 90,000)

How does the adjustment for depreciation differ from other deferral adjustments? -The depreciation adjustment increases a liability account rather than reducing an asset account directly. -The depreciation adjustment uses a contra-asset account rather than reducing the asset account directly. -The depreciation adjustment results in an increase to a long-lived asset account, while the other deferral adjustments reduce asset accounts. -The depreciation adjustment is not a deferral adjustment, but rather an accrual adjustment.

The depreciation adjustment uses a contra-asset account rather than reducing the asset accounts directly

Which of the following statements regarding debits and credits is always correct? -The normal balance for an account is the side on which it decreases -The total value of all debits recorded in the ledger must equal the the total value of all credits recorded in the ledger -The total value of all debits to a particular account must equal the total value of all credits to that account -Debits decrease accounts while credits increase them

The total value of all debits recorded in the ledger must equal the the total value of all credits recorded in the ledger

A company received a bill of $2,110 for utilities used in the current month, but does not plan to pay it until next month. The journal entry to record this event: -will include a debit to Accounts Receivable for $2,110. -will include a credit to Utilities Expense. -is not required; no journal entry should be prepared until the utilities bill is paid. -will include a credit to Accounts Payable for $2,110.

Will include a credit to accounts payable for $2,110

Debt financing is financing obtained from: -Creditors -both creditors and stockholders. -selling goods or services on credit. -stockholders.

creditors

The primary source of revenues and expenses comes from: -financing activities. -other activities. -investing activities. -operating activities.

operating activities