Accounting questions

(a) If operations for an accounting period resulted in cash sales of $25,000, sales on account of $30,000,

and expenses paid in cash of $50,000, did the business incur a net income or a net loss for the period?

(b) What is the amount of net income or net loss?

(c) If liabilities are $65,000 and owner’s equity is $35,000, the amount of the assets is:

(d) If assets are $205,000 and owner’s equity is $75,000, the amount of the liabilities is:

Sample Solution

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