Pass No Pass Name: 5

1 6

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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 up, 8 up 3 up, 4 up and down, 6 1 up, 2 down, 5 up, 8 up down, 7 up and down or down

Operating Expenses: 1 up, 2 up, 5 down, 8 up

Liabilities: 3 up

Investment: 3 down, 4 down, 7 down

Taxable Income: Owner Equity: 6 down

Finance: 3 down, 6 down, 7 up

Net Cash Flow: Net Income: 1 up, 8 up or down

You own an online cell phone accessory store. 1. You collaborate with a cell phone company to include one of your cases with every purchase which increases sales. Assume you make money on each sale. 2. You spend cash researching case designs for a recently released cell phone. 3. You take out a loan for new computers. 4. You spend cash to build a new warehouse in china. 5. A new contract with a chinese manufacturing facility lowers your production costs. 6. Your business partner decides to retire so you repurchase his share of the company with cash from the business. 7. Packaging material shows up with an invoice. 8. You sell your 10 tons of your new patented ultra-plastic for cash.

New Revenue Asset Definitions

Balance Sheet MUST balance!

Sign Conventions

Cash Flow Echo