The FastForward Company balance sheet shows cash $5,000, accounts receivable $7,000, office equipment $3,000, and accounts payable $4,000. What is the amount of equity? 10,000 11,000 12,000 None of the above A primary operating objective of a business is to increase the equity of its owner or owners by acquiring assets incurring liabilities earning a profit incurring expenses Accounting entry - Paid for Cleaning the office, $500 Dr Revenue, Cr Cash - $500 Dr Cash, Cr Cleaning Expense - $500 Dr Cleaning Expense, Cr Cash - $500 none of the above Sales 60,000, Variable cost = 20,000, = = Fixed cost 12,000. What is the breakeven point in $'s? 36,000 18,000 20,000 30,000 Which of the following accounting principles would require that all goods and services purchased be recorded at cost? Going concern principle Currency principle Historical cost principle Business entity principle Google may Win the case because it is not a monopoly Lose the case because it controls 90% of the searches Win the case because it can hire the best lawyers Win the case because it charges nothing Today, Cedar Park Company paid $600 of its accounts payable in cash. What is the effect on the accounting equation? Assets, $600 increase; liabilities, no effect; equity, $600 increase. Assets, $600 decrease; liabilities, $600 decrease; equity, no effect. Assets, $600 decrease; liabilities, $400 increase; equity, $200 decrease Assets, no effect; liabilities, $600 decrease; equity, $400 increase Sales Price per unit = 6, Variable cost = 2. Fixed cost = 12,000. What is the breakeven point in units? Option 1 3000 6000 Cannot be determined Depreciation results in Cash outflow Depends on the value of the asset Depends on the cash balance Depends on the method of depreciation Does not affect Cash If the value of an Asset increases, the accounts should be updated.( Assume in the normal course of business) Always true Sometimes true Always false None of the above If assets are $175,000 and equity is $47,000, then liabilities equal $47,000 $128,000 $175,000 $204,000 Accounting entry - Owner withdrawing money, $6,000 Dr Revenue, Cr Cash - $6,000 Dr Expense, Cr Cash - $6,000 Dr Cash, Cr Expense 6,000 None of the above Profit is another name for the income statement income equity a business transaction Higher profits must Increase Cash Balance Increase Accounts Payable Increase Accounts Receivble Increase Equity Sales Price per unit = 6, Variable cost = 3. Fixed cost 12,000. What is the breakeven point in $'s? 200 4000 6000 None of the above Accounting entry - Paid for Utilities, $600 Dr Revenue, Cr Cash - $600 Dr Cash, Cr Utility - $600 Dr Utility Expense, Cr Cash - $600 none of the above Higher the Margin of Safety, lower the financial risk Depends on Costs Depends on Sales Depends on Contribution True