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The rule that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash, and (3) measures the amount of revenue as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services, is called the:

The ability to generate future revenues and meet long-term obligations is referred to as:

A cash equivalent is:

The cash flow on total assets ratio is computed by dividing cash flows from operations by average total assets.

Use the following information and the indirect method to calculate the net cash provided or used by operating activities:           Net income $ 85,300   Depreciation expense   12,000   Gain on sale of land   7,500   Increase in merchandise inventory   2,050   Increase in accounts payable   6,150  

Accounting standards require companies to include a statement of cash flows in a complete set of financial statements.

In preparing a company’s statement of cash flows for the most recent year using the indirect method, the following information is available:           Net income for the year was $ 52,000   Accounts payable increased by   18,000   Accounts receivable decreased by   25,000   Inventories increased by   5,000   Depreciation expense was   30,000   Net cash provided by operating activities was:

The gain or loss from retirement of debt is reported under cash flows from operating activities on the statement of cash flows using the direct method.

When a company bills a customer for $700 for services rendered, the journal entry to record this transaction will include a $700 debit to Services Revenue.

The accounting equation implies that: Assets + Liabilities = Equity.