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When a company provides services for which cash will not be received until some future date, the company should record the amount billed as accounts receivable.

Jennings, Co. makes a $25,000, 90-day, 7% cash loan to Clayton Co. Jennings’s entry to record the transaction should be:

A credit entry:

Mah Jong Company’s most recent balance sheet reported total assets of $1.9 million, total liabilities of $0.8 million, and total equity of $1.1 million. Its Debt to equity ratio is:

Sing Sing Company reported Cost of goods sold of $835,000 and ending Inventory of $41,750. The Days’ sales in inventory (rounded to whole days) is:

The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses is the:

Interest expense is not:

The heading on every financial statement lists the three W’s—Who (the name of the business); What (the name of the statement); and Where (the organization’s address).

The description of the relation between a company’s assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the:

A general journal gives a complete record of each transaction in one place, and shows the debits and credits for each transaction.