Pass No Pass Name: 5

1 6

2 7

3 8

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, 8 up 3 up and down, 4 up, 5 1 down, 2 up, 8 up up, 6 up, 7 up and down Investment: 3 down, 4 down, 6 down, 7 up Liabilities: 4 up, 6 up Finance: 4 up, 5 up, 6 up Taxable Income: Owner Equity: 5 up Net Income:

Operating Expenses: 2 down

Net Cash Flow:

You own a hotel near the freeway.. 1. Fewer people are taking vacations this year, and reservations are down. 2. You let a member of your cleaning staff go, since there are fewer rooms to clean. 3. You use cash to purchase a large sign that you intend to put on your roof. 4. You take out a loan to buy new furniture for your lobby. 5. You ask your sister if she will become your partner, in exchange for $15,000 that you need to keep the doors open. She agrees. 6. You receive a box of new sheets and towels, with an invoice payable in 60 days. 7. You sell your old furniture on craigslist. 8. The new sign and furniture do the trick, and you see an increase in customers.

New Revenue Asset Definitions

Balance Sheet MUST balance!

Sign Conventions

Cash Flow Echo