Mastery Exercise Winter 2018 8 Week Session B Module 1

(True) or (False)? Although it is required for the accounting equation to be in balance, like all rules there are certain exceptions where it can be out of balance. (True) (False) Try again. Study the foundation concept on which the equation is based on the page titled “The Accounting Equation Is Not a Mathematical Formula.” 问题 2 1 / 1 分 John’s Landscaping had shareholders that invested $150,000. The company has earned revenues of $75,000, of which $50,000 were collected. They have incurred expenses of $82,000. Calculate its net income. $7,000 $32,000 $25,000 ($7,000) Correct. Investments and dividends are not part of operating income. Revenue is reported when it is earned, regardless of when it is received. 错误问题 3 0 / 1 分 (True) or (False)? Dividends are expenses of a business. True: Dividends are an expense, similar to interest. False: Dividends are not an expense, and instead bypass the net income altogether and go straight to Retained Earnings. Try again. Please review the Section on Dividends again on the page titled “Statement of Shareholder’s Equity, the Value of the Business.”