Question

13) A business provides services to a customer to $15.000 OR following accounts will be created Which of a Cash b. Accounts Receivable C Service Revenue d. Bank b 14) A debt that a business owes to an outside party is called: a. an asset. aliability c. stockholders' equity d. revenue. 15) Which of the following is the correct accounting equation? a. Assets + Liabilities - Equity b. Assets Liabilities + Equity c. Assets + Revenues = Equity d. Assets + Revenues = Liabilities + Expenses 16) Scott's Camera Shop started the year with total assets of $80,000 and total liabilitie $40,000. During the year, the business earned revenues of $120,000 and incurred expenses of $70,000. Scott made no additional capital contributions during the ye but did make withdrawals of $60,000. Calculate Scott's net income for year. a. $50,000 b. $120,000 C. $70,000 d. $80,000 17) Scott's Camera Shop started the year with total assets of $80,000 and total $40,000. During the year, the business earned revenues of $120,000 and in expenses of $70,000. Scott made no additional capital contributions during but did make withdrawals of $60,000. What is the amount of owner's equ of the year? a. $70,000 b. $120,000 C. $30,000 d. $60,000

Answer 1

013) Ans (o service Revenue 8. 14 Ans (b) a liability Q.15) Ans- (6) Assets = Liabilities & equity Q.16) Ansa $50,000 assets = liabilites & capital 8000 = 4000 + Copital 4000-capital Net income = revenues - enpenses $120,000-70000=850,000 Q.17) Ans() $30,000 Explanation: Equity = owner's Capital - owner's withdrawals + Revenues - enpenses = ($ 80,000 - $40,000) - $ 60,000+ $120,000-$70,000 = $30,000