Page 8 of 50 A. Revenue recognition principle. B. Going concern principle. C. Monetary unit principle. D. Business entity principle. E. Cost principle. 94. Revenue is recognized in most businesses: A. When the customer's order is received. B. Only if the transaction creates an account receivable. C. Only if paid in cash. D. Upon completion of the sale or when services have been performed and the business obtains the right to collect the sales price. E. When cash from a sale is received. 95. The description of the relationship between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the: A. Balance sheet. B. Accounting equation. C. Business equation. D. Liability equation. E. Net income. 96. The balance sheet equation is: A. Revenues minus expenses equals net income. B. Debits equal credits. C. The bookkeeping phase of accounting. D. Another name for the accounting equation. E. Assets minus liabilities. 97. If equity is $30,000 and liabilities are $73,000, then assets equal: A. $ 30,000. B. $ 40,000. C. $ 60,000. D. $ 73,000. E. $103,000. 98. If assets are $175,000 and equity is $47,000, then liabilities equal: A. $ 47,000. B. $128,000. C. $175,000. D. $204,000. E. $222,000. 99. If assets are $144,000 and liabilities are $37,000, then equity equals: A. $ 37,000. B. $ 74,000. C. $107,000. D. $144,000. E. $181,000. 100. The accounting equation can be stated as: A. Assets = nonowner equity + equity. B. Liabilities = assets equity. C. Assets = liabilities + equity. D. Equity = assets - liabilities. E. All of these answers are correct. 101. The assets of a business total $20,000; the liabilities, $8,000. The claims of the owners are: A. $ 0. B. $ 8,000. C. $12,000. D. $20,000. E. $28,000. 102. The FastForward Company balance sheet shows cash $5,000, accounts receivable $7,000, ofce equipment $3,000, and accounts payable $4,000. What is the amount of equity? A. $ 1,000. B. $11,000. C. $12,000. D. $15,000. E. $19,000. 103. An exchange between two parties of economic consideration such as goods, services, money, or rights to collect money is called: A. The accounting equation. B. Bookkeeping. C. A business transaction. D. An audit. E. A gift