Exam 2: Analyzing Business Transactions

The statement of ____________________ reports the changes that have occurred in the owner's financial interest during the reporting period.

Owner's equity is

Ginger Yale Ice Company receives money from a customer on account. Recording this transaction will

The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. Cash K. Mitchell, Capital Accounts Receivable Revenue Equipment Expenses Accounts Payable -Purchased a computer for cash

Funds taken from the business by the owner for personal use are called ___________________.

The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. Cash K. Mitchell, Capital Accounts Receivable Revenue Equipment Expenses Accounts Payable -Performed services for cash

The income statement shows revenue, ___________________, and net income or net loss for a period of time.

When equipment is purchased for cash,

The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. Cash K. Mitchell, Capital Accounts Receivable Revenue Equipment Expenses Accounts Payable -Received cash from credit customers

The financial interest of the owner in a business is called owner's equity, or ___________________.

Assets and liabilities are reported on

A double line drawn under the figures in a money column shows that the computation is complete.

The total amount of Liabilities is

An expense by definition is not

The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. Cash K. Mitchell, Capital Accounts Receivable Revenue Equipment Expenses Accounts Payable -Issued checks to pay salaries

The property that a business owns is referred to as its ___________________.

When a business pays cash for salaries, assets decrease and expenses ___________________.

On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurred in the month of September and affected the following accounts: Cash Accounts Payable Accounts Receivable Shawn Dahl, Capital Office Equipment Revenue Canoe and Kayak Equipment Expenses Transactions 1. Shawn Dahl invested $45,000 in cash to open the business 2. Paid $12,700 in cash for the purchase of kayak and canoe equipment 3. Paid $1,050 in cash for rent expense 4. Purchased additional kayak and canoe equipment for $3,800 on credit 5. Received $3,900 in cash for kayak rentals 6. Rented canoes and kayaks for $1,200 on account 7. Purchased office equipment for $125 in cash 8. Received $800 in cash from credit clients 9. Shawn Dahl withdrew $1,500 in cash for personal expenses -Based on the information shown above, what is the balance of Accounts Receivable for Whitewater Rentals at the end of September?

The balance sheet shows

When a business sells services for cash, assets increase and revenue ___________________.