The accounting equation for Elie Enterprises is as follows: Assets = Liabilities + Stockholders' Equity $120,000 = $60,000 + $60,000 If the company now purchases office equipment on account for $10,000, the accounting equation will change to:
A) $130,000 = $70,000 + $60,000
B) $120,000 = $60,000 + $60,000
C) $130,000 = $60,000 + $70,000
D) $130,000 = $66,000 + $64,000
Ans: A) $130,000 = $70,000 + $60,000
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Dina Kader withdrew a total of $35,000 from her business during the current year. The entry needed to close the withdrawals account is:
a. Debit Income Summary and credit Cash for $35,000. b. Debit Dina Kader, Withdrawals and credit Cash for $35,000. c. Debit Income Summary and credit Dina Kader, Withdrawals for $35,000. d. Debit Dina Kader, Capital and credit Dina Kader, Withdrawals for $35,000. e. Debit Dina Kader, Withdrawals and credit Dina Kader, Capital for $35,000.
Which of the following is not included as a key characteristic of useful information in the International Accounting Standards Board's Framework?
(a) Accuracy. (b) Relevance. (c) Reliability. (d) Understandability.