27. The purchase of supplies appears on the balance sheet as an expense. FALSE 28. The income statement reports on operating activities at a point in time. FALSE 29. A net loss on an income statement results when expenses are greater than revenues. TRUE 30. Both Accounts Receivable and Revenue increase when a service is performed and the customer agrees to pay in the future. TRUE 31. The financial statement that reflects the financial position of a firm at a specific point in time is the Statement of Owner's Equity. FALSE 32. Owner investments and withdrawals impact the profitability of the firm. FALSE 33. The statement of Owner's Equity reports the changes in equity of the owner over time. TRUE Multiple Choice Questions 34. Net Income: A. Decreases equity. B. Represents the amount of assets owners put into a business. C. Equals assets minus liabilities. D. Is the excess of revenues over expenses. E. Represents owners' claims against assets.
27. The purchase of supplies appears on the balance sheet as an expense. FALSE 28. The income statement reports on operating activities at a point in time. FALSE 29. A net loss on an income statement results when expenses are greater than revenues. TRUE 30. Both Accounts Receivable and Revenue increase when a service is performed and the customer agrees to pay in the future. TRUE 31. The financial statement that reflects the financial position of a firm at a specific point in time is the Statement of Owner's Equity. FALSE 32. Owner investments and withdrawals impact the profitability of the firm. FALSE 33. The statement of Owner's Equity reports the changes in equity of the owner over time. TRUE Multiple Choice Questions 34. Net Income: A. Decreases equity. B. Represents the amount of assets owners put into a business. C. Equals assets minus liabilities. D. Is the excess of revenues over expenses. E. Represents owners' claims against assets.
Accounting%20for%20Business%20Transactions.docx