Receiving Dividends
Operating
Investing
Financing
Operating
Selling a Building
Operating
Investing
Financing
Investing
Issuing a Common Stock
Operating
Investing
Financing
Financing
Paying Salaries
Operating
Investing
Financing
Operating
Paying Taxes
Operating
Investing
Financing
Operating
Buying Common Stock
Operating
Investing
Financing
Investing
Paying interest
Operating
Investing
Financing
Operating
Borrowing money
Operating
Investing
Financing
Financing
Paying dividends
Operating
Investing
Financing
Financing
Paying back loan
Operating
Investing
Financing
Financing
Buying Land
Operating
Investing
Financing
Investing
Salaries payable is a liability associated with a (deferred/accrued) expense.
Accrued
(Cash/accrual) basis accounting does not comply with GAAP
Cash
Paying salaries to employees involves an (inflow/outflow) of cash.
Outflow
Issuing stock for cash involves an (inflow/outflow) of cash.
Inflow
When an expense is incurred, Stockholders’ Equity (increases/decreases).
Decreases
Accumulated Depreciation (increases/decreases) the value of an asset.
Decreases
When inventories or supplies are used up they move from the Balance Sheet the (Statement of Cash Flows/ Income Statement)
Income Statement
In the equation for Retained Earnings, Dividends (Declared/Paid) are subtracted.
Declared
What is the effect of falling to make an adjusting entry for Prepaid Rent?
a. Assets are too low and Equity is too high
b. Liabilities are too high and Equity is too high
c. Assets are too high and liabilities are too high
d. Assets are too high and equity is too high
D.
What is the effect of failing to make an adjusting entry for deferred revenue?
a. Assets are too high and liabilities are too high
b. Liabilities are too high and Equity is too low
c. Liabilities are too low and Equity is too low
d. Assets are too low and liabilities are too high
B.
