Glendale Corporation had the following transactions in August: Earned $5,000 of revenues on account; collected $5,000 from a customer for services provided last month; incurred $500 of repair expense and paid cash; paid $600 for rent that it owed from A) $500 B) $5,000 C) $9,500 D) $4,500 ANSWER D .Net income = Revenue – […]
Date: September 2nd, 2020
Fitch Supply Services received $1,000 cash from a customer; the amount was owed to the business from the previous month. What is the effect of this transaction on the accounting equation? A) Accounts Receivable increases and Service Revenue increases B) Cash increases and Accounts Receivable decreases C) Cash increases and Service Revenue increases D) Cash […]
Date: September 2nd, 2020
________ represent the right to receive cash in the future from customers for goods sold or for services performed. A) Accounts Receivable B) Accounts Payable C) Equity D) Expenses ANSWER A
Date: September 2nd, 2020
Homeward Supply Services received $1,000 cash from a customer; the amount was owed to the business from the previous month. Which of the following accounts will decrease as a result of this transaction? A) Cash B) Revenue C) Accounts Payable D) Accounts Receivable ANSWER D
Date: September 2nd, 2020
________ represents a short-term liability created by purchasing “on account.” A) Accounts Receivable B) Notes Payable C) Accounts Payable D) Expenses ANSWER C
Date: September 2nd, 2020
Venus, Inc. paid $12,000 on accounts payable. How does this transaction affect the accounting equation of Venus? A) assets decrease by $12,000 and equity increases by $12,000 B) assets decrease by $12,000 and liabilities decrease by $12,000 C) assets increase by $12,000 and equity decreases by $12,000 D) assets increase by $12,000 and liabilities increase […]
Date: September 2nd, 2020
Indicate the effects on the accounting equation of the following business transactions of Mayflower Service Corporation for b) to d) below. Use proper account titles. Transaction a) is answered as a guide a) Received cash from Don Jones; issued common stock to him. What will be an ideal response ANSWER Increase asset (Cash); Increase equity […]
Date: September 2nd, 2020
Ace, Inc. had the following transactions during June: Performed services for $5,000 on account; received cash on account, $7,000; paid $600 for repair expense; paid $2,000 to a supplier that it owed from the previous month What is the combined effect on Cash of the June transactions? A) $4,400 increase B) $4,400 decrease C) $7,000 […]
Date: September 2nd, 2020
Zetom Company receives a bill from one of its suppliers for services received and will pay the supplier next month. How does the receipt of the bill from the supplier affect the accounting equation of Zetom? A) assets and equity decrease B) liabilities increase and equity decreases C) assets and liabilities increase D) liabilities and […]
Date: September 2nd, 2020
Mary Williams contributed $50,000 cash to BCD Corporation in exchange for stock. As a result of this transaction, assets and revenues will increase. Indicate whether the statement is true or false ANSWER FALSE .Assets and equity will increase.
Date: September 2nd, 2020
