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
Aventis Company distributes cash dividends. How does this transaction affect the accounting equation? A) The assets, liabilities, and equity remain the same. B) The assets decrease and equity decreases. C) The assets increase and liabilities decrease. D) The assets decrease and equity increases. ANSWER B
Date: September 2nd, 2020
Hamilton Lawn Services incurred $800 as a repair expense and paid for it in cash. This transaction will ________. A) decrease the stockholders’ equity B) increase the assets of the business C) increase the liabilities of the business D) decrease the liabilities of the business ANSWER A
Date: September 2nd, 2020
Which of the following is true of assets? A) Assets include cash, merchandise inventory, and accounts payable. B) Assets are something of value the business owns or controls. C) Assets do not need to provide future benefit to the business. D) Assets can be recorded at the expected cost if acquired at a bargain. ANSWER […]
Date: September 2nd, 2020
The net income of Avid Camera Services is $20,000. The beginning and ending stockholders’ equity balances were $36,000 and $54,000, respectively. The company issued no common stock. Calculate the amount of dividends. A) $12,000 B) $2,000 C) $16,000 D) $15,000 ANSWER B .Stockholders’ Equity Beginning Balance $36,000 Add: Net Income 20,000 Less: Stockholders’ Equity Ending […]
Date: September 2nd, 2020
Define assets. Provide three examples of assets. What will be an ideal response ANSWER Assets are economic resources that are expected to benefit the business in the future. Assets are something the business owns or has control of. Examples include cash, merchandise inventory, furniture, and land.
Date: September 2nd, 2020
