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Name: 5

Quiz 1 - Accounting
Instructions: Write the number of each item in the appropriate section(s) of the appropriate financial statements
below and indicate whether it is an increase or decrease.

Income Statement Balance Sheet Cash Flow

Operating Revenue: Assets: Operations:
3 down 1 up 3 down
4 down 2 up 4 down
5 up & down
6 up & down
Operating Expenses: 7 down Investment:
8 up & down 5 up
Liabilities: 6 up
1 up
2 up
Taxable Income: Finance:
2 up

Owner Equity:
7 down
Net Income: Net Cash Fllow:

1 A weeks worth of sheesha and coals are delivered to your hookah bar with an invoice
2 Took 1000 out of the line of credit because you wanted extra cash on hand
3 City imposes a new hookah tax. You plan on not changing prices and just paying the tax
4 You lose the business of six loyal customers because of recently published research that says smoking
hookah can lead to infertility and/or hair loss.
5 Luis finally pays his $2,000 tab.
6 You finally sell the property of the old SE Portland location.
7 A customer knocks one of the hookahs over; one of the new couches lights on fire and is burned beyond
8 You invest in a new stereo-system at the new downtown location using cash.

New Revenue ≠ Asset Balance Sheet MUST balance! Change in Income Statement
NOT reflected in cash statement