Answer the following statements true (T) or false (F)
1. Every business transaction leaves the accounting equation in balance.
2.An external transaction is an exchange within an entity that may or may not affect the
accounting equation.
3. From an accounting perspective, an event is a happening that affects the accounting equation,
but cannot be measured.
4. Stockholders’ equity is increased when cash is received from customers in payment of
previously recorded accounts receivable.
5. A stockholder’s investment increases equity via net income.
1. TRUE
2. FALSE
3. FALSE
4. FALSE
5. FALSE
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An adjusting entry always affects
A) balance sheet accounts only. B) income statement accounts only. C) an income statement account and a balance sheet account. D) either a balance sheet account or an income statement account but not both.
Outsourcing production or operating activities will help in improving the cash flow by reducing investment in physical assets
Indicate whether the statement is true or false
Shopbots collect price and product information from multiple electronic vendors and provide it to consumers
Indicate whether the statement is true or false
In a civil case John Deer vs. Jane Doe, the judge finds that the jury was swayed by the fact that Jane Doe was a woman when passing the verdict in her favor. Owing to this, the judge reduces the damages awarded to Jane by $20,000. This act is called ________.
A) remittitur B) judgment notwithstanding the verdict C) motion for summary judgment D) motion for judgment on the pleadings