Accounting Basics and Cycle

Fill in the blank: The Accounting Equation is ______ = Liabilities + Owner's Equity.

• A) Assets

• B) Revenues

• C) Expenses

• D) Profits

Fill in the blank: Liabilities are the ______ claims.

• owner's

• creditor's

• asset's

• equity's

Fill in the blank: Kendall Corporation's payment of $18,000 for a one-year lease on office space is recorded as a(n) ________.

• Asset

• Liability

• Expense

• Revenue

Fill in the blank: 'Fees earned' is classified under _______.

• Assets

• Liabilities

• Stockholder's Equity

Fill in the blank: The net income for Kendall Corporation is ________.

• $1,000

• $2,000

• $3,000

• $4,000

What is the cash paid for office equipment?

• $300

• $400

• $500

• $600

What is the beginning balance in the Statement of Retained Earnings for Kendall Corporation for the month ended March 31, 2003?

• $0

• $100

• $500

• $1000

Fill in the blank: The balance sheet is a financial statement that reports a company's ________ at a specific point in time.

• Income

• Financial position

• Cash flow

• Revenue

What is the significance of recording closing entries on the t-accounts?

• To prepare for the next accounting period

• To calculate net income

• To list all liabilities

• To determine total assets.

Fill in the blank: The balance sheet equation is Assets = Liabilities + ________.

• Revenue

• Owners' equity

• Expenses

• Dividends