An example of a financing activity is: ()
A. Buying office supplies.
B. Obtaining a long-term loan.
C. Buying office equipment.
D. Selling inventory.
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Resources that are expected to yield future benefits are: ()
Assets.
B. Revenues.
C. Liabilities.
D. Owner's Equity.
Decreases in equity that represent costs of assets or services used to earn revenues are called: ()
A. Liabilities.
B. Equity.
C. Withdrawals.
D. Expenses.
The statement of owner's equity: ()
A. Reports how equity changes at a point in time.
B. Reports how equity changes over a period of time.
C. Reports on cash flows for operating, financing, and investing activities over a period of time.
D. Reports on cash flows for operating, financing, and investing activities at a point in time.
Unearned revenues are: ()
A. Revenues that have been earned and received in cash.
B. Revenues that have been earned but not yet collected in cash.
C. Liabilities created when a customer pays in advance for products or services before the revenue is earned.
D. Recorded as an asset in the accounting records.
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