Pass No Pass Name: 5

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Quiz 1 - Accounting
Instructions: Write the number of each item in the appropriate section(s) of the appropriate financial statements below and indicate whether it is an increase or decrease. Income Statement Balance Sheet Cash Flow Operating Revenue: Assets: Operations: 1 down, 7 up 3 up, 4 down, 5 up, 6 up 1 down, 2 up, 7 up, 8 and down down

Operating Expenses: 2 down, 8 up

Investment: 3 down, 5 down, 6 down Liabilities: 3 up, 5 up Finance: 3 up, 4 down, 5 up

Taxable Income: Owner Equity: 4 down Net Income:

Net Cash Flow:

You own a used book store. 1. Online bookstores are poaching your customers. Sales fall 5% 2. You find a less expensive supplier for the free coffee you have been giving away to customers. 3. You take out a loan to replace some aging shelves and cash registers. 4. Your business partner thinks physical bookstores are on their way out. He leaves the business. (Assume he takes money with him) 5. Your supplier sends a pallet of books (along with an invoice, payable in six weeks) by famous authors who have agreed to do book signings in your store. 6. You purchase a large sign to tell people about the new author signings. 7. People are coming in to meet their favorite authors. Sales are up. 8. You hire a few friends to come in once a week and spruce up the place. New Revenue Asset Definitions Balance Sheet MUST balance! Sign Conventions Cash Flow Echo

Pass No Pass 5

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2 7

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New Revenue Asset Definitions

Balance Sheet MUST balance!

Sign Conventions

Cash Flow Echo