Joan’s Delivery has total assets of $385 million. Its total liabilities are $100 million and its equity is $285 million. Calculate its debt ratio.

Horizontal analysis is used to reveal patterns in data covering two or more successive periods.

Kegler’s Services, Inc. provides services to clients. On May 1, a client prepaid Kegler’s Services $60,000 for 6-months services in advance. Kegler’s Services’ general journal entry to record this transaction will include a:

Scalici Co. has 10 employees, who earn a total of $1,800 in salaries each working day. They are paid on Monday for the five-day workweek ending on the previous Friday. Assume that year ended on December 31, which is a Wednesday, and all employees will be paid salaries for five full days on the following Monday. The adjusting entry needed on December 31 is:

Scalici Co. has 10 employees, who earn a total of $1,800 in salaries each working day. They are paid on Monday for the five-day workweek ending on the previous Friday. Assume that year ended on December 31, which is a Wednesday, and all employees will be paid salaries for five full days on the following Monday. The adjusting entry needed on December 31 is:

The expense recognition principle, also called the matching principle:

Tweeter reported net income of $17,500 for the past year. At the beginning of the year the company had $200,000 in assets and $50,000 in liabilities. By the end of the year, assets had increased to $300,000 and liabilities were $75,000. Calculate its return on assets:

When expenses exceed revenues, the resulting change in equity is called:

A company acquires equipment for $75,000 cash. This represents a(n):

Which of the following does not affect the equity of a business?