Life, Inc., experienced the following events in 2018, its first year of operation:

1. Performed counseling services for $28,400 cash.
2. On February 1, 2018, paid $19,800 cash to rent office space for the coming year.
3. Adjusted the accounts to reflect the amount of rent used during the year.

Required
Based on this information alone

a. Record the events under an accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.)
b. Prepare an income statement for the 2014 accounting period.
c. Prepare a balance sheet for the 2014 accounting period.
d. Prepare a statement of cash flows for the 2014 accounting period.
e. Ignoring all other future events, what is the amount of rent expense that would be recognized in 2015?

Which of the following statements about the relationship between economic costs and accounting costs is true? multiple choice accounting costs are equal to or greater than economic costs. accounting costs must always equal economic costs. accounting costs are always greater than economic costs. accounting costs are always less than or equal to economic costs.

Which of the following statements is correct? a. two firms with identical sales and operating costs but with different amounts of debt and tax rates will have different operating incomes by definition. b. free cash flow (fcf) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations. c. retained earnings as reported on the balance sheet represent cash and, therefore, are available to distribute to stockholders as dividends or any other required cash payments to creditors and suppliers. d. if a firm is reporting its income in accordance with generally accepted accounting principles, then its net income as reported on the income statement should be equal to its free cash flow. e. after-tax operating income is calculated as ebit(1 - t) + depreciation.

Which of the following is an example of a production quota? a. the government sets an upper limit on the quantity that each dairy farmer can produce. b. the government sets a price floor in the market for dairy products. c. the government sets a lower limit on the quantity that each dairy farmer can produce. d. the government guarantees to buy a specified quantity of dairy products from farmers.