Quiz Solutions

An accounting firm collected cash on account. As a result of

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.

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Date: September 2nd, 2020

Bubble Wraps Company receives cash from a stockholder, John

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

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Date: September 2nd, 2020

Aventis Company distributes cash dividends. How does this tr

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

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Date: September 2nd, 2020

York Casting Services started the year with total assets of

York Casting Services started the year with total assets of $110,000 and total liabilities of $50,000. The revenues and the expenses for the year amounted to $140,000 and $50,000, respectively During the year, the company did not issue any common stock, but it distributed dividends of $70,000. Calculate the amount of increase or decrease in […]

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Date: September 2nd, 2020

Which of the following is true of assets? A) Assets include

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 […]

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Date: September 2nd, 2020