Question

TEST 1A (Concluded) 5. The owner of equity in a partnership is called (n)... 6. The authoritative body that currenty has primary responsibilty for the develpment of GAAP is The excess of expenses over revenues is refered to as 8. Amounts owed by a business to others are reterred to as 9. Resources consumed or services used in the process of earning revenue are called 10. Land was offered for sale at $75,000. If you paid $65,000 for the land, 10._ the amount that you would record for the purchase of the land in the accounting records bs 11. Insurance premiums paid in advance are considered to be assets and are 12. Assets are financed by two sources:(1) owner's equity and (2) 13. The liabilities that result from purchases on account are referred to as. 12. 13. 14. If operations for an accounting period resulted in fees for cash of $15,000 and fees on account for $40,000, the amount of revenue 14 for the period was 15. If operations for an accounting period resulted in fees for cash of $19,000, fees on account of $7,000, and expenses paid in cash of $50,000, did the business incur a net income or a net loss for the period? 16. 16. What was the amount of net income or net loss indicated in Question 15? 17. A statement detailing the change in cash during a period of time is a 17 18. 19. 18. Principles that guide the conduct of businesses are referred to as 19. In the accounting equation, liabilities plus owner's equity equals 20. The form of the balance sheet with the liability and owner's equity 20. sections presented next to the assets section is called...... 21. If liabilities are $75,000 and owner's equity is $35,000, the amount of 22. If assets are $190,000 and owner's equity is $50,000, the amount 23. If total assets increased by $30,000 and liabilities increased by $20,000 24. The owners equity at the beginning of the period was $45,000, at the end 21. the assets is 22. of the liabilities is during the period, the amount and direction (increase or decrease) of the period's change in owners equity was 23. of the period, assets were $140,000 and liabilities were $71,000. If the owner made no additional investments or withdrawals during the period, did the business incur a net income or a net loss for the period? 24. 25. What was the amount of net income or net loss indicated in Question 24? 26. If assets are $110,000 and owner's equity is $37,000, the amount 25. of iabilities is 26 NOTE: No credit is given for a partialy correct answer

Answer 1

5. Partner.

6. Financial Accounting Standards Board (FASB).

7. Net Loss.

8. Liability.

9. Expense.

10. $65000.

11. Prepaid asset.

12. Borrowing.

13. Creditors.

14. $55000.

15. Net Loss.

16. $24000

17. Cash Flow Statement.

18. Generally Accepted Accounting Principles (GAAP).

19. Assets.

20. Horizontal Balance Sheet.

21. $110,000.

22. $140,000.

23. $10000 (increase).

24. Net Income.

25. $69000.

26. $73000.