cash owned by the company.

collections of resources belonging to the company and the claims on these resources.

owners’ investment in the business.

resources belonging to a company that have future benefit to the company.

Unearned Service Revenue

The statement of cash flows.

The retained earnings statement.

Retained earnings + Net income – Dividends.

Retained earnings – Net income + Dividends.

Retained earnings + Net income + Dividends.

Retained earnings – Net income – Dividends.

Easy to transfer ownership

Favorable tax treatment

its owner’s personal resources are at stake.

its ownership is easily transferable via the sale of shares of stock.

it is simple to establish.

stockholders’ equity will decrease.

liabilities will increase.

liabilities will decrease.

leaves total assets unchanged.

increases assets and liabilities.

increases assets and stockholders’ equity.

increases assets and decreases stockholders’ equity.

is increased by debits.

is decreased by credits.

is increased by credits.

has a normal balance of a debit.

Assets, liabilities, and dividends

Assets, expenses, and dividends

Assets, expense, and retained earnings

Assets, expenses, and revenues

there must always be entries made on both sides of the accounting equation.

the amount of the debits must equal the amount of the credits.

there must only be two accounts affected by any transaction.

the number of debit accounts must equal the number of credit accounts.

post to the ledger, journalize, analyze.

analyze, journalize, post to the ledger.

journalize, analyze, post to the ledger.

journalize, post to the ledger, analyze.

they contribute to the production of revenue.

they are billed by the supplier.

the invoice is received.

in the period that income taxes are paid.

at the end of the month.

when the performance obligation is satisfied.

net income and operating expenses.

sales revenue and cost of goods sold plus operating expenses.

sales revenue and cost of goods sold.

sales revenue and operating expenses.

cost of goods sold plus operating expenses.

Operating expenses

$ 39000

Sales revenue

190000

Cost of goods sold

137000

Operating expenses

$ 24000

Sales returns and allowances

6000

Sales discounts

3000

Sales revenue

186000

Cost of goods sold

93000

Operating expenses

$ 50000

Sales returns and allowances

4000

Sales discounts

7000

Sales revenue

160000

Cost of goods sold

94000

the first to be allocated to ending inventory.

the last to be allocated to cost of goods sold.

the first to be allocated to cost of goods sold.

not allocated to cost of goods sold or ending inventory.

It is generally good business management to sell the most recently acquired goods first.

Under FIFO, the ending inventory is based on the latest units purchased.

FIFO seldom coincides with the actual physical flow of inventory.

The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold.

customer satisfaction surveys.

reconciling the bank statement.

insistence that employees take vacations.

using prenumbered documents.

recording of all transactions.

an extensive marketing plan.

Deposit of $200 recorded by the bank as $20.

A returned $1000 check recorded by the bank as $100.

Check written for $56, but recorded by the company as $65.

Check written for $53, but recorded by the company as $35.

added to the balance per bank.

deducted from the balance per bank.

added to the balance per books.

deducted from the balance per books.