When a company bills a customer for $700 for services rendered, the journal entry to record this transaction will include a $700 debit to Services Revenue.

The accounting equation implies that: Assets + Liabilities = Equity.

Three of the most common tools of financial analysis are:

The first step in the processing of a transaction is to analyze the transaction and source documents.

The financial statement that identifies a company’s cash receipts and cash payments over a period of time is the:

The gain or loss from retirement of debt is reported under cash flows from operating activities on the statement of cash flows using the direct method.

Companies have the option of using either the direct or indirect method to prepare the operating section of the statement of cash flows.

All of the following are true regarding unearned revenues except:

Guidelines (rules-of-thumb) are general standards of comparison developed from:

Standards for comparisons in financial statement analysis do not include: