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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.
Assets > Liabilities.
9- Liabilities of a company are owed to
underwriters.
creditors.
debtors.
benefactors.
10- At October 1, Arcade Fire Enterprises reported stockholders’
equity of $35,000. During October, common stock of $2,000 was
issued and the company earned net income of $7,000. If
stockholders’ equity at October 31 totals $40,000, what amount of
dividends were paid during the month?
$2,000