91.If total liabilities decreased by $46,000 during a period of time and stockholder's equity increased by $60,000 duringthe same period, the amount and direction (increase or decrease) of the period's change in total assets is
a.$106,000 increase
b.$14,000 increase
c.$14,000 decrease
d.$106,000 decrease
92.Which of the following is
nota business transaction?
a.make a sales offer
b.sell goods for cash
c.receive cash for services to be rendered later
d.pay for supplies
93.A business paid $7,000 to a creditor in payment of an amount owed. The effect of the transaction on the accountingequation was to
a.increase an asset, decrease another asset
b.decrease an asset, decrease a liability
c.increase an asset, increase a liability
d.increase an asset, increase stockholders' equity
94.Earning revenue
a.increases assets, increases stockholders' equity
b.increases assets, decreases stockholders' equity
c.increases one asset, decreases another asset
d.decreases assets, increases liabilities
95.The monetary value charged to customers for the performance of services sold is called a(n)
a.asset
b.net income
c.capital
d.revenue
96.Revenues are reported when
a.a contract is signed
b.cash is received from the customer
c.work is begun on the job
d.work is completed on the job
97.Expenses are recorded when
a.cash is paid for services rendered
b.a bill is received in advance of services rendered
c.assets are used in the process of earning revenue
d.assets are purchased
98.Goods purchased on account for future use in the business, such as supplies, are called
a.prepaid liabilities
b.revenues
c.prepaid expenses
d.liabilities
99.The asset created by a business when it makes a sale on account is termed
a.accounts payable
b.prepaid expense
c.unearned revenue
d.accounts receivable
100.The debt created by a business when it makes a purchase on account is referred to as an
a.account payable
b.account receivable
c.asset
d.expense payable