Quiz Solutions

Hamilton Lawn Services incurred $800 as a repair expense and

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

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Date: September 2nd, 2020

Harris Landscaping Services incurred $500 as a labor expense

Harris Landscaping Services incurred $500 as a labor expense and promised to pay the labor agency within 30 days. Which of the following accounts will increase as a result of this transaction? A) Accounts Receivable B) Cash C) Accounts Payable D) Retained Earnings ANSWER C

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Date: September 2nd, 2020

Which of the following is true of retained earnings? A) Ret

Which of the following is true of retained earnings? A) Retained earnings decrease with payment of dividends. B) Retained earnings increase with purchase of assets. C) Retained earnings decrease with collection of revenue. D) Retained earnings increase with payment on account. ANSWER A

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Date: September 2nd, 2020

Equity of a corporation is broken out into two components. W

Equity of a corporation is broken out into two components. Which of the following are the two components of the equity of a corporation? A) current assets and fixed assets B) common stock and liabilities C) revenues and expenses D) contributed capital and retained earnings ANSWER D

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Date: September 2nd, 2020