Font FC Alignment Number 357 X 0 P O B s E F G a. Stockholders invested cash in the business K L M + b. Borrowed money from a bank 0 + c. Purchased equipment on credit + d. Rendered services for cash 0 0 + 0 e. Paid creditor in (e) f. Paid monthly rent g. Rendered services for which the customer 0 promised to pay at a later date. Indicate, by letter, which of the above transactions would be reported in the income statement: and N + 0 0 + 0 - + d 10 11. The inflows of assets for services rendered or goods delivered (as measured by the assets received from customers) are called while the assets surrendered or consumed in this process are called The statement that shows the assets and equ an entity as of a point in time is called the The specific unit or organization for which accounting information is accumulated and reported is called the The basis for valuation of assets in accounting is. The concept in accounting refers to the fact that the amounts entered in an accounting system are the objective money prices determined in the exchange process If expenses for a period exceed revenues for the same period, the entity is deemed to have suffered a An income statement is prepared for a while a balance sheet is prepared as of a 12. 13 14 Under the The concept, the accountant assumes that a business will continue more is equal to stockholders' equity divided by 15 16 2 53 17 54 18. 55 56 37 58 59 60 61 62 63 64 65 CE The shows the cash inflows and cash outflows for a Indicate the effect each of the following transactions has on the basic accounting equation by indicating a. Decrease in an asset, decrease in a liability b. Increase in an asset, increase in stockholders' equity c. Increase in one asset, decrease in another asset. d. Increase in an asset, increase in a liability e. None of the above. '1. Purchased equipment on account. 2. Returned an item of defective equipment purchased in (1) 3. Paid cash to the supplier of equipment purchased in (1) for the remainder of the equipment 4. Received cash on account from customers 'S. The stockholders invested additional cash in the business Matching Completion Ready