Accountants record ________. A) economic recessions B) estimated future transactions C) a transaction or any event that affects the financial position of the business and can be measured with faithful representation D) the $20,000 increase in value of a building that actually cost $50,000 but could be sold for $70,000 ANSWER C
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
A corporation purchased office supplies on account. As a result of this transaction, expenses and liabilities will increase. Indicate whether the statement is true or false ANSWER FALSE .Assets and liabilities increase.
Date: September 2nd, 2020
A law firm provides legal services for clients who do not pay immediately. As a result of this transaction, assets and revenues increase. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
An accounting firm collected cash on account. As a result of this transaction, total assets, liabilities, and equity are all unchanged. Indicate whether the statement is true or false ANSWER TRUE .The asset Cash increases and the asset Accounts Receivable decreases. Liabilities and equity are not affected.
Date: September 2nd, 2020
Bubble Wraps Company receives cash from a stockholder, John Trent, and issues common stock to him. The two accounts involved in this transaction are ________. A) Accounts Payable and Cash B) Cash and Common Stock C) Common Stock and Accounts Payable D) Common Stock and Accounts Receivable ANSWER B
Date: September 2nd, 2020
Lush Lawns Corporation earned $1,000 for lawn mowing services rendered. The customer promised to pay at a later time. Which of the following accounts increased as a result of this transaction? A) Accounts Payable B) Supplies C) Cash D) Accounts Receivable ANSWER D
Date: September 2nd, 2020
Assets are something of value that the business owns or has control of. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Gatto Production Services started the year with total assets of $120,000 and total liabilities of $65,000. The revenues and the expenses for the year amounted to $110,000 and $50,000, respectively During the year, the company did not issue any common stock, but it distributed dividends of $70,000. Calculate Gatto’s net income for the year. A) […]
Date: September 2nd, 2020
The economic resources of a business such as furniture, building, and land are its ________. A) liabilities B) revenues C) assets D) dividends ANSWER C
Date: September 2nd, 2020
