14. Explain the following terms: (a) Current asset (b) Fixed asset (c) Liquidity order (d) Current liability (e) Long-term liability 15. Explain the cost principle as it is applied to fixed assets on the balance sheet. 18. What effect does a withdrawal of assets from the business by the owner have on the owner's equity? 7. (a) What effect does a net loss have on the owner's equity? (b) What effect does a net income have on the owner's equity? (c) What is a statement of owner's equity? & Define prepaid expenses with examples and indicate what type of accou they are.
14. Explain the following terms: (a) Current asset (b) Fixed asset (c) Liquidity order (d) Current liability (e) Long-term liability 15. Explain the cost principle as it is applied to fixed assets on the balance sheet. 18. What effect does a withdrawal of assets from the business by the owner have on the owner's equity? 7. (a) What effect does a net loss have on the owner's equity? (b) What effect does a net income have on the owner's equity? (c) What is a statement of owner's equity? & Define prepaid expenses with examples and indicate what type of accou they are.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter2: Analyzing Transactions: The Accounting Equation
Section: Chapter Questions
Problem 3CE: What are the effects of the following transactions on the accounting equation? Indicate an increase...
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