False ANSWER: True DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.AICPA.BB.03 - Legal ACCT.AICPA.FN.03 - Measurement BUSPROG: Ethics A business is an organization in which basic resources or inputs, like materials and labor, are assembled and processed to provide outputs in the form of goods or services to customers. True False ANSWER: True DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.03 - Business Forms ACCT.AICPA.BB.01 - Industry ACCT.AICPA.BB.06 - Resource Management BUSPROG: Analytic Two factors that typically lead to ethical violations are relevance and timeliness of accounting information. True False ANSWER: False DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.AICPA.BB.01 - Industry ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic An example of a general-purpose financial statement would be a report about projected price increases related to transportation costs. True False ANSWER: False DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01
ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic The Financial Accounting Standards Board (FASB) is the authoritative body that has primary responsibility for developing accounting principles. True False ANSWER: True DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-02 - 01-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic The cost concept is the basis for entering the purchase price into the accounting records. True False ANSWER: True DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-02 - 01-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic The unit of measurement concept requires that economic data be recorded in dollars. True False ANSWER: True DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-02 - 01-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic If a building is appraised for $85,000, offered for sale at $90,000, and the buyer pays $80,000 cash for it, the buyer would record the building at $85,000. True False
ACCREDITING STANDARDS: ACCT.ACBSP.APC.09 - Financial Statements ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Profit is the difference between assets and liabilities the incoming cash and outgoing cash the assets purchased with cash contributed by the owner and the cash spent to operate the business the amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services ANSWER: d DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose ACCT.ACBSP.APC.09 - Financial Statements ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Two common areas of accounting that respectively provide information to internal and external users are forensic accounting and financial accounting managerial accounting and financial accounting managerial accounting and environmental accounting financial accounting and tax accounting systems ANSWER: b DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose ACCT.AICPA.BB.01 - Industry ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Which of the following best describes accounting? Records economic data but does not communicate the data to users according to any specific rules. Is an information system that provides reports to users regarding economic activities and condition of a business. Is of no use by individuals outside of the business. Is used only for filling out tax returns and for financial statements for various type of governmental reporting requirements. ANSWER: b DIFFICULTY: Moderate Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose ACCT.AICPA.BB.01 - Industry ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Which type of accountant typically practices as an individual or as a member of a public accounting firm? Certified Public Accountant Certified Payroll Professional Certified Internal Auditor Certified Management Accountant ANSWER: a DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose ACCT.AICPA.BB.01 - Industry ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Financial reports are used by management creditors investors all are correct ANSWER: d DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose ACCT.AICPA.BB.01 - Industry ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic All of the following are general-purpose financial statements except balance sheet income statement statement of owner’s equity cash budget ANSWER: d DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.ACBSP.APC.09 - Financial Statements
ACCT.AICPA.BB.01 - Industry ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Which of the following is a manufacturing business? General Motors Facebook American Airlines Target ANSWER: a DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.03 - Business Forms ACCT.AICPA.BB.01 - Industry ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Which of the following is a service business? Microsoft Dell Computers Facebook Walmart ANSWER: c DIFFICULTY: Easy Bloom's: Knowledge LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.03 - Business Forms ACCT.AICPA.BB.01 - Industry ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Which of the following groups of companies are all examples of a merchandising business? Delta Airlines, Marriott, Gap Gap, Amazon, NIKE GameStop, Sony, Dell GameStop, Best Buy, Gap ANSWER: d DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.03 - Business Forms ACCT.AICPA.BB.01 - Industry
ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Which of the following groups are considered to be internal users of accounting information? employees and customers customers and vendors employees and managers government entities and banks ANSWER: c DIFFICULTY: Easy LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose ACCT.AICPA.BB.01 - Industry ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic The following are examples of external users of accounting information except government entities customers creditors managers ANSWER: d DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose ACCT.AICPA.BB.01 - Industry ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Which of the following is the best description of accounting’s role in business? Accounting provides stockholders with information regarding the market value of the company’s stocks. Accounting provides information to managers to operate the business and to other users to make decisions regarding the economic condition of the company. Accounting helps in decreasing the credit risk of the company. Accounting is not responsible for providing any form of information to users. That is the role of the Information Systems Department. ANSWER: b DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose ACCT.AICPA.BB.01 - Industry
LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Revenues are reported when a contract is signed cash is received from the customer work is begun on the job work is completed on the job ANSWER: d DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Expenses are recorded when cash is paid for services rendered a bill is received in advance of services rendered assets are used in the process of earning revenue assets are purchased ANSWER: c DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Goods purchased on account for future use in the business, such as supplies, are called prepaid liabilities revenues prepaid expenses liabilities ANSWER: c DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions
ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic The asset created by a business when it makes a sale on account is termed accounts payable prepaid expense unearned revenue accounts receivable ANSWER: d DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.ACBSP.APC.12 - Receivables Reporting ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic The debt created by a business when it makes a purchase on account is referred to as an account payable account receivable asset expense payable ANSWER: a DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.ACBSP.APC.16 - Current Liabilities Reporting ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic If total assets decreased by $88,000 during a period of time and owner's equity increased by $71,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is $17,000 increase $88,000 decrease $159,000 increase $159,000 decrease ANSWER: d DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions
$270,000? a. $45,000 b. $50,000 c. $106,000 d. $370,000 ANSWER: a DIFFICULTY: Challenging Bloom’s: Applying LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Which of the following asset accounts is increased when a receivable is collected? Accounts receivable Supplies Accounts payable Cash ANSWER: d DIFFICULTY: Easy Bloom's: Knowledge LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.ACBSP.APC.15 - Current Assets Reporting ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Transactions affecting owner's equity include owner's investments and payment of liabilities owner's investments, owner's withdrawals, earning of revenues, and incurrence of expenses owner's investments, earning of revenues, incurrence of expenses, and collection of accounts receivable owner's withdrawals, earning of revenues, incurrence of expenses, and purchase of supplies on account ANSWER: b DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Michael Anderson is starting his computer programming business and has deposited in initial investment of $15,000 into the business cash account. Identify how the accounting equation will be affected. Increase Assets (Cash) and increase Liabilities (Accounts Payable) Increase Assets (Cash) and increase Owner’s Equity (Michael Anderson, Capital)
Increase Assets (Accounts Receivable) and decrease Liabilities (Accounts Payable) Increase Assets (Cash) and increase Assets (Accounts Receivable) ANSWER: b DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Gomez Service Company paid its first installment on a note payable in the amount of $2,000. How will this transaction affect the accounting equation? Increase Liabilities (Notes Payable) and decrease Assets (Cash) Decrease Assets (Cash) and decrease Owner’s Equity (Note Payable Expense) Decrease Assets (Cash) and decrease Assets (Notes Receivable) Decrease Assets (Cash) and decrease Liabilities (Notes Payable) ANSWER: d DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.ACBSP.APC.16 - Current Liabilities Reporting ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Ramon Ramos has withdrawn $750 from Ramos Repair Company’s cash account to deposit in his personal account. How does this transaction affect Ramos Repair Company’s accounting equation? Increase Assets (Accounts Receivable) and decrease Assets (Cash) Decrease Assets (Cash) and decrease Owner’s Equity (Owner’s Withdrawal) Decrease Assets (Cash) and decrease Liabilities (Accounts Payable) Increase Assets (Cash) and decrease Owner’s Equity (Owner’s Withdrawal) ANSWER: b DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Which of the following is not a business transaction? Erin deposits $15,000 in a bank account in the name of Erin’s Lawn Service. Erin provided services to customers earning fees of $600. Erin purchased hedge trimmers for her lawn service agreeing to pay the supplier next month.
ACCREDITING STANDARDS: ACCT.ACBSP.APC.20 - Accounting for Corporations ACCT.AICPA.BB.03 - Legal ACCT.AICPA.FN.03 - Measurement BUSPROG: Ethics List the five steps in the process by which accounting provides information to users. ANSWER: 1. Identify users. Assess users’ information needs. Design the accounting information system to meet users’ needs. Record economic data about business activities and events. Prepare accounting reports for users. DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose ACCT.AICPA.BB.01 - Industry ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic For each of the following companies, identify whether they are a service, merchandising, or manufacturing business. A. Dillard’s B. Time Warner Cable C. General Motors D. Blockbuster E. Applebee’s F. Sony G. Best Buy H. Banana Republic I. H&R Block ANSWER: A. Merchandising B. Service C. Manufacturing D. Service E. Service / Manufacturing F. Manufacturing G. Merchandising H. Merchandising I. Service DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.1-01 - 1-01
Entry Entry Account Type Name of Account Amount Increase or Decrease Account Type Name of Account Amount Increase or Decrease (1) (2) (3) (4) (1) (2) (3) (4) 1 2 3 4 5 6 ANSWER: Account Type Name of Amount Increase or Decrease Account Type Name of Account Increase or Decrease (1) (2) (3) (4) (1) (2) (3) (4) 1 A Cash 55,000 Increase OE Capital 55,000 Increase 2 A Cash 7,000 Decrease L Accounts Payable 7,000 Decrease 3 A Accounts Receivable 2,565 Increase R Fees Earned 2,565 Increase 4 A Cash 8,450 Increase A Accounts Receivable 8,450 Decrease 5 A Cash 2,500 Decrease OE Drawing 2,500 Increase 6 L Accounts Payable 160 Increase E Utilities Expense 160 Increase DIFFICULTY: Challenging Bloom's: Comprehension LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Collins Landscape Company purchased various landscaping supplies on account to be used for landscape designs for its customers. How will this business transaction affect the accounting equation? ANSWER: Increase Assets (Supplies) and increase Liabilities (Accounts Payable) DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Shiny Kar Company had the following transactions. For each transaction, show the effect on the accounting equation by putting the amount and direction (plus, minus, or NC for no change) in each box of the table below.
Balance Sheet Income Statement Statement of Cash Flows D. Statement of Owner’s Equity # Item 1. Withdrawals 2. Revenues 3. Supplies 4. Land 5. Accounts Payable 6. Accounts Receivable 7. Operating Activities 8. Wages Expense 9. Net Income 10. Cash ANSWER: # Answer Account 1. D (If Cash, also C.) Withdrawals 2. B Revenues 3. A Supplies 4. A Land 5. A Accounts Payable 6. A Accounts Receivable 7. C Operating Activities 8. B Wages Expense 9. B & D Net Income 10. A & C Cash DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-05 - 01-05 ACCREDITING STANDARDS: ACCT.ACBSP.APC.09 - Financial Statements ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Name and describe the four primary financial statements for a proprietorship. ANSWER: 1. Income Statement: A summary of the revenue and expenses for a specific period of time, such as a month or a year. Statement of Owner’s Equity: A summary of the changes in the owner’s equity that have occurred during a specific period of time such as a
ANSWER: Bright Futures Company Balance Sheet August 31 Assets Cash $ 3,000 Accounts Receivable 1,500 Supplies 140 Computer Equipment 20,000 Total Assets $ 24,640 Total Liabilities and Owner’s Equity Liabilities: Accounts Payable $ 1,540 Notes Payable 2,400 Total Liabilities $ 3,940 Jason Bright, Capital 20,700 Total Liabilities and Owner’s Equity $ 24,640 DIFFICULTY: Moderate Bloom’s: Applying LEARNING OBJECTIVES: ACCT.WARD.16.01-05 - 01-05 ACCREDITING STANDARDS: ACCT.ACBSP.APC.09 - Financial Statements ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic The account balances of Awesome Travel Services at December 31 are listed below. There were no additional investments or withdrawals by J. Trendsetter during the year. Accounts Payable $12,000 J. Trendsetter, Capital (Jan. 1) $10,000 Accounts Receivable 14,000 Supplies 1,000 Cash 18,000 Taxes Expense 1,300 Computer Equipment 21,000 Utilities Expense 8,000 Fees Earned 78,000 Wages Expense 25,000 Rent Expense 10,000 Supplies Expense 1,700 Prepare an income statement, statement of owner’s equity, and a balance sheet as of December 31. ANSWER: Awesome Travel Services Income Statement For the Year Ended December 31 Fees earned $78,000 Operating expenses: Wages expense $25,000 Rent expense 10,000 Utilities expense 8,000 Supplies expense 1,700
Analysis LEARNING OBJECTIVES: ACCT.WARD.16.01-06 - 01-06 ACCREDITING STANDARDS: ACCT.ACBSP.APC.23 - Financial Statement Analysis ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic The following data were taken from Miller Company’s balance sheet: Dec. 31, Year 2 Dec. 31, Year 1 Total liabilities $150,000 $105,000 Total owner’s equity 75,000 60,000 Compute the ratio of liabilities to owner’s equity. Has the creditors’ risk increased or decreased from December 31, Year 1, to December 31, Year 2? ANSWER: a. 12/31/Year 2: $150,000 / $75,000 = 2.0 12/31/Year 1: $105,000 / $60,000 = 1.75 b. Increased DIFFICULTY: Moderate Bloom's: Analysis LEARNING OBJECTIVES: ACCT.WARD.16.01-06 - 01-06 ACCREDITING STANDARDS: ACCT.ACBSP.APC.23 - Financial Statement Analysis ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Match the following business types with each business listed below. Each may be used more than once. Service firm Manufacturing firm Merchandising firm DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.03 - Business Forms ACCT.AICPA.BB.01 - Industry ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic A tax preparation firm ANSWER: a A law firm ANSWER: a
Match each transactions with its effect on the accounting equation. Each letter may be used more than once. Increase assets, increase liabilities Increase liabilities, decrease owner’s equity Increase assets, increase owner’s equity No effect Decrease assets, decrease liabilities Decrease assets, decrease owner’s equity DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Received cash for services provided ANSWER: c Received utility bill to be paid next month ANSWER: b Investment of land by owner ANSWER: c Paid part of an amount owed to a creditor ANSWER: e Paid cash for the purchase of a one year insurance policy ANSWER: d Received payment from a customer on account ANSWER: d Cash withdrawal by owner ANSWER: f
Provided a service to a customer on account ANSWER: c Purchased supplies on credit ANSWER: a Paid wages ANSWER: f Cash investment by owner ANSWER: c Borrowed money from a bank ANSWER: a Purchased equipment for cash ANSWER: d Received cash for providing services to customers ANSWER: c Used up supplies that were already on hand ANSWER: f Match the following characteristics with the financial statement it describes it. Each may be used more than once. Income Statement Balance Sheet Statement of Owner’s Equity Statement of Cash Flows DIFFICULTY: Bloom’s: Remembering Easy LEARNING OBJECTIVES: ACCT.WARD.16.01-05 - 01-05 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions