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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: 6 down 1 up, 2 up and down, 4 3 down, 6 down up, 5 down, 7 up and down, 8 up Investment: 2 down, 7 up Operating Expenses: 3 up Liabilities: 1 up, 4 up, 5 down Finance: 1 up, 4 up, 5 down, 8 up Taxable Income: Net Cash Flow: Owner Equity: 8 up Net Income:

You manufacture and sell commercial space shuttles. 1. You take out a loan to have cash on hand for the future development of a new prototype. 2. You use cash to purchase the metals you will need for the hull. 3. You hire a team of security experts to protect the new prototype. 4. Red Bull puts down a deposit on one of the new (unbuilt) models. 5. You make a payment on your loan (no interest expense). 6. You experience a decrease in sales of an older model that is currently in production when word gets out that you are developing something new. 7. You sell an older piece of machinery that you no longer use. 8. Your company issues 10,000 shares of stock.

New Revenue ≠ Asset Definitions

Balance Sheet MUST balance!

Sign Conventions

Cash Flow Echo

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