The financing functions of a business include:
Selling common stock
Recording the items on the financial statements in dollars is:
Monetary unit principle
The Maximum Experience Company acquired a building for $500,000. Maximum
Experience had an appraisal done and found that the building was worth $575,000. The
seller had paid $300,000 for the building 6 years ago. Which accounting principle would
prescribe that Maximum Experience record the building on its records at $500,000?
On December 15, 2008, Myers Legal Services signed a $50,000 contract with a client to
provide legal services to the client in 2009. Which accounting principle would require
Myers Legal Services to record the legal fees revenue in 2009 and not 2008?
Revenue recognition principle
A limited partnership:
Includes a general partner with unlimited liability
Increases in retained earnings from a company's earnings activities are:
A financial statement providing information that helps users understand a company's
financial status and which lists the types and amounts of assets, liabilities and equity as
of a specific date is called a(n):
Ending Liabilities are 67,000, Beginning Equity was $87,000, Common Stock sold during
year totaled $31,000, Expenses for the year were $22,000, Dividends declared totaled
$13,000, Ending Equity for the year is $181,000 and Beginning Assets for the year were
What was Revenue for the year?
181,000 + 13,000 + 22,000 - 31,000 - 87,000 = 98,000