4-The accounting process is correctly sequenced as identification, recording, communication. recording, communication, identification. communication, recording, identification. identification, communication, recording.
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.