40. Expenses: A. Increase equity. B. Are gross increases in equity from a company's earning activity. C. Are the costs of assets or services used to earn revenues. D. Occur when equity exceeds revenue. E. Are creditors' claims on assets. 41. The Phrase "On Credit" indicates: A. That payment has already been made B. That payment will likely never be collected C. That the customer has a credit balance D. That the customer will need to pay their balance within 10 days E. That cash payment will occur at a later dated 42. If assets are $109,000 and liabilities are $32,000, then equity equals: A. $32,000. B. $77,000. C. $109,000. D. $141,000. E. $198,000. Feedback: Equity = $109,000 - $32,000 = $77,000 43. Another name for equity is: A. Net income. B. Expenses. C. Net assets. D. Revenue. E. Net loss. 44. The excess of expenses over revenues for a period is: A. Net assets. B. Equity. C. Net loss. D. Net income. E. A liability.
40. Expenses: A. Increase equity. B. Are gross increases in equity from a company's earning activity. C. Are the costs of assets or services used to earn revenues. D. Occur when equity exceeds revenue. E. Are creditors' claims on assets. 41. The Phrase "On Credit" indicates: A. That payment has already been made B. That payment will likely never be collected C. That the customer has a credit balance D. That the customer will need to pay their balance within 10 days E. That cash payment will occur at a later dated 42. If assets are $109,000 and liabilities are $32,000, then equity equals: A. $32,000. B. $77,000. C. $109,000. D. $141,000. E. $198,000. Feedback: Equity = $109,000 - $32,000 = $77,000 43. Another name for equity is: A. Net income. B. Expenses. C. Net assets. D. Revenue. E. Net loss. 44. The excess of expenses over revenues for a period is: A. Net assets. B. Equity. C. Net loss. D. Net income. E. A liability.
Accounting%20for%20Business%20Transactions.docx