41. Stockholders’ equity is the stockholders’ right to the assets of the business. 42. Liabilities are debts owed by the business entity. 43. The accounts payable account is listed in the chart...

41. Stockholders’ equity is the stockholders’ right to the assets of the business.

42. Liabilities are debts owed by the business entity.

43. The accounts payable account is listed in the chart of accounts as an asset.

44. A dividends account reflects the distribution of earnings to stockholders.

45. Revenues is the difference between cash receipts and cash payments.

46. Expenses are assets that no longer have a value to the company.

47. Issuance of capital stock increases total stockholders’ equity.

48. The journal includes both debit and credit accounts for each transaction.

49. A transaction that is recorded in the journal is called a journal entry.

50. Assets are increased with debits and decrease with credits.