74.
Which of the following is not considered to be a recordable transaction?
75.
Which of the following transactions will cause both the left and right side of the accounting
equation to decrease?
76.
When a company buys equipment for $150,000 and pays for one third in cash and the other
two thirds is financed by a note payable, which of the following are the effects on the
accounting equation?
77.
Which of the following describes the impact on the balance sheet when a company uses cash
to purchase the stock of another company?
78.
Which of the following transactions will not change a company’s total stockholders’ equity?
79.
Alpha Company issued 1,000 shares of $10 par value common stock to stockholders, in
exchange for $15,000 cash. Which of the following correctly describes the impact of this
transaction on Alpha’s financial statements?
80.
Which of the following statements is incorrect?
81.
Selling stock to investors for cash would result in which of the following?
82.
Borrowing cash from a bank would result in which of the following?
83.
Which of the following journal entries is correct when common stock is sold for cash at a price
greater than par value?
84.
Which of the following statements is false?
85.
A company purchases a delivery van by paying $5,000 cash and by signing a $25,000 note
payable. Which of the following correctly describes the recording of the delivery van
purchase?
86.
Cadet Company paid an accounts payable of $1,000. This transaction should be recorded on
the payment date as follows:
87.
Centex, Inc. issued 50,000 shares of its $1 par value common stock for $20 per share. The
journal entry to record the stock issue would include which of the following?
88.
Which of the following correctly describes the recording of a dividend declaration by a
company’s board of directors?
89.
Superior has provided the following information for its recent year of operation:
The common stock account balance at the beginning of the year was $20,000 and the year–
end balance was $25,000.
The additional paid-in capital account balance increased $2,500 during the year.
The retained earnings balance at the beginning of the year was $75,000 and the year-end
balance was $91,000.
Net income was $26,000.
How much were Superior’s dividend declarations during its recent year of operation?
90.
Superior has provided the following information for its recent year of operation:
The common stock account balance at the beginning of the year was $20,000 and the year-
end balance was $25,000.
The additional paid-in capital account balance increased $2,500 during the year.
The retained earnings balance at the beginning of the year was $75,000 and the year-end
balance was $91,000.
Net income was $26,000.
How much did Superior sell its common stock for during the year?
91.
Which of the following statements is correct?
92.
Which of the following journal entries is correct when a business entity purchases land
costing $30,000 by signing a one-year note payable?
93.
Which of the following journal entries is correct when a business entity issues common stock,
above par value, to stockholders in exchange for cash?
94.
Which of the following journal entries is correct when a business entity purchases a building
by paying cash and by signing a note payable for the balance?
95.
Which of the following journal entries is correct when a business entity pays cash for
advertising to be used next year?
96.
Which of the following journal entries is correct when a business entity uses cash to pay an
account payable?
97.
Which of the following transactions would result in an increase in the current ratio?
98.
Which of the following transactions would result in a decrease in the current ratio?
99.
Which of the following account balances would not be included in the calculation of the
current ratio?
100.
Which of the following statements does not properly describe the current ratio?