1) If total liabilities decreased by 25,000 during a period of time and stockholders’ equity increased by 30,000 during the same period, the amount and direction (increase or decrease) of the periods change in total assets is?
A) 65,000 B) 5,000 C) 5,000 D) 65,000
2) Revenues are reported when
A) Contract is signed
B) Cash is recived from the customer
C) Work is begun on the job
D) Work is completed on the job
3) Which of the following financial statements reports information as of the specific date?
A) Income statement
B) statement of retained earnings
C) statement of cash flow
D) Balance sheet
4) Proof that the dollar amount of the debits equals the dollar amount fo the credits in the ledger means
A) All of the information from the journal was correctly transferred to the ledger
B) All accounts have their correct balances in the ledger
C) Only the journal is accurate, the ledger may be incorrect
D) Only the debit amounts equal the credit dollar amounts