Expenses are recorded when:
cash is paid for services rendered
a bill is received in advance of services rendered
none of the above
If total liabilities decreased by $25,000 during a period of time and owners equity increased
by $30,000 during the same period, the amount and direction (increase or decrease) of the
period's change in total assets is:
If total assets decreased by $47,000 during a period of time and owners equity increased by
$24,000 during the same period, then the amount and direction (increase or decrease) of the
period's change in total liabilities is:
How does paying dividends with cash affect the business accounting equation?
decrease assets; decrease owners’ equity
decrease assets; increase owners’ equity
increase assets; decrease liabilities
There is no effect on the assets, liabilities, or owners’ equity.
10. On November 1 of the current year, the assets and liabilities of Jim Chu, M.D., are as
follows: Cash, $10,000; Accounts Receivable, $8,200; Supplies, $1,050; Land, $25,000;
Accounts Payable, $6,530. What is the amount of the stockholders' equity (Jim Chu's
capital) as of November 1 of the current year?