4- If total assets equal $ 345,000 and total stockholders ’ equity equal $ 120,000 , then total liabilities must equal
$ 465,000 . There is not enough information given to determine this . $ 225,000 . $ 120,000 . 6-Liabilities of a company would not include notes payable . salaries and wages payable . accounts payable . cash .
7- Bright Eyes Downtown Diner received a bill of $ 600 from the Jronand Wine Advertising Agency . The owner , A . A . Bondy , is postponing payment of the bill until a later date . The effect on specific items in the basic accounting equation is
a decrease in Accounts Payable and an increase in Retained Earnings . a decrease in Cash and an increase in Retained Earnings . a decrease in Cash and an increase in Accounts Payable . an increase in Accounts Payable and a decrease in Retained Earnings . 8-Net income results when Revenues > Expenses . Revenues < Expenses .