Want more review
questions on spa
financial management?
If a spa’s owners’ equity equals $200,000
and the spa’s liabilities equal $320,000,
how much are the spa’s assets worth?
Purchase ISPA’s Financial Management
for Spas on experienceispa.com/
education-resources.
$120,000
$200,000
$320,000
$520,000
With __________ accounting, revenue
is recorded when it is generated and
expenses are counted when incurred,
regardless of whether cash changes
hands at that time.
cash
A spa’s financial statements must
provide information on all the facts
pertinent to the interpretation of the
statements. This is a statement of the
__________ principle.
unit of measurement
To debit an account means to:
record an amount on the left side.
business entity
continuity basis
accrual
full disclosure
consistency
conservatism
increase liability and owners’
equity accounts.
record an amount on the right side.
decrease asset and liability accounts.
The first step in the accounting cycle is:
record transactions in ledger accounts.
prepare a trial balance.
record transactions in journals.
prepare adjusting entries.
November 2012
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PULSE 39