22. Lou’s total operating expenses for the month of July are ______.
(Format your answer as $x,xxx)
$2,110
23. Lou’s net income on his income statement is _______.
(Format your answer as $x,xxx)
$3,390
24. What was Lou's Accounts Receivable balance for the month of July?
(Format your answer as $x,xxx)
$4,500
25. Which accounting assumption allows bookkeepers to break a company’s financial life into smaller chunks of time?
- Entity Assumption
- Going Concern Assumption
- The Periodicity Assumption
- Accrual Basis Assumption
26. Caren Cosmos is the world's most popular soft rock folk singer. She sold t-shirts online last year and made $7,000. The money from these sales went directly into her personal banking account which she used for her personal needs. Which key accounting assumption did Caren ignore?
- Accrual Basis Assumption
- Going Concern Assumption
- Periodicity Assumption
- Entity Assumption
27. Which expense provided by Lou did you not include in the journal?
- On July 7, Lou rented a piece of commercial equipment from Home Depot for $1,000. He paid for it using his credit card.
- July 24, Lou hired a subcontractor to help with a job. He paid the subcontractor with check #0002 for $650.00
- On July 17, Lou purchased a new bicycle for his son for $275.
- On July 4, Lou put an ad in the Penny Saver for his business. He paid $450 with check #0001.
28. An accounting method in which revenues are reported when they are earned and expenses are reported when they are incurred is called:
- Cash-Basis Accounting
- Accrual Accounting
- Hybrid Accounting