Author: Anonymous

The journal is known as a book of original entry.

Liabilities are owner claims on assets.

On May 1, a two-year insurance policy was purchased for $18,000 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company’s income statement for the first year ended December 31?

Common uses of the statement of cash flows include all but which of the following?

The ordering of accounts in a trial balance typically follows their identification number from the chart of accounts, that is, assets first, then liabilities, then common stock and dividends, followed by revenues and expenses.

Net income occurs when revenues exceed expenses.

The journal is known as a book of original entry.

Typical cash flows from investing activities include each of the following except:

The balance column in a ledger account is:

Every business transaction leaves the accounting equation in balance.