56.
When the company pays stockholders a dividend, what is the effect on the accounting
equation for that company?
57.
Pumpkin Inc. sold $500 in pumpkins to a customer on account on January 1. On January 11
Pumpkin collected the cash from that customer. What is the impact on Pumpkin’s
accounting equation from the collection of cash?
58.
A company receives a $50,000 cash deposit from a customer on October 15 but will not
provide services until November 20. Which of the following statements is true?
59.
Which of the following would increase assets and increase liabilities?
60.
Receiving cash from an account receivable:
61.
An expense has what effect on the accounting equation?
62.
Revenues have what effect on the accounting equation?
63.
Investments by stockholders have what effect on the accounting equation?
64.
Which of the following is not possible when recording a transaction?
65.
Purchasing office supplies on account will:
66.
Providing services and receiving cash will:
67.
When a company provides services on account, the accounting equation would be affected
as follows:
68.
If a company provides services on account, which of the following is true?
69.
When a payment is made on an account payable:
70.
Purchasing office equipment on account has what impact on the accounting equation?
71.
Purchasing supplies for cash has what effect on the accounting equation?
72.
On January 1, Brad Inc. sold $30,000 in products to a customer on account. Then on
January 10, Brad collected the cash on that account. What is the impact on Brad’s
accounting equation from the collection of cash on January 10?
73.
On September 30, MFP Co. paid employee salaries of $7,000, including $1,000 it owed to
its employees last month. What are the effects of this transaction on the accounting
equation?
74.
Following are transactions of Gotebo Tanners, Inc., a new company, during the month of
January:
1. Issued 10,000 shares of common stock for $15,000 cash.
2. Purchased land for $12,000, signing a note payable for the full amount.
3. Purchased office equipment for $1,200 cash.
4. Received cash of $14,000 for services provided to customers during the month.
5. Purchased $300 of office supplies on account.
6. Paid employees $10,000 for their first month’s salaries.
What was the total amount of Gotebo’s liabilities following these six transactions?
75.
Consider the following transactions:
Issued common stock for cash.
Purchased equipment by signing a note payable.
Paid rent for the current month.
Collected cash from customers on account.
How many of these four transactions increased the given company’s total assets?
76.
Assume that Sallisaw Sideboards, Inc. had a retained earnings balance of $10,000 on April
1, and that the company had the following transactions during April.
Issued common stock for cash, $5,000.
Provided services to customers on account, $2,000.
Provided services to customers in exchange for cash, $900.
Purchased equipment and paid cash, $4,300.
Paid April rent, $800.
Paid employees’ salaries for April, $700.
What was Sallisaw’s retained earnings balance at the end of April?
77.
Consider the following transactions:
Issued common stock for cash.
Purchased equipment by signing a note payable.
Provided services to customers on account.
Collected cash from customers on account.
How many of these four transactions increased the given company’s total liabilities?
78.
Following are transactions of Gotebo Tanners, Inc., a new company, during the month of
January:
1. Issued 10,000 shares of common stock for $15,000 cash.
2. Purchased land for $12,000, signing a note payable for the full amount.
3. Purchased office equipment for $1,200 cash.
4. Received cash of $14,000 for services provided to customers during the month.
5. Purchased $300 of office supplies on account.
6. Paid employees $10,000 for their first month’s salaries.
How many of these transactions decreased Gotebo’s total assets?
79.
Following are transactions of Gotebo Tanners, Inc., a new company, during the month of
January:
1. Issued 10,000 shares of common stock for $15,000 cash.
2. Purchased land for $12,000, signing a note payable for the full amount.
3. Purchased office equipment for $1,200 cash.
4. Received cash of $14,000 for services provided to customers during the month.
5. Purchased $300 of office supplies on account.
6. Paid employees $10,000 for their first month’s salaries.
How many of these transactions increased Gotebo’s liabilities?
80.
Which of the following transactions causes a decrease in stockholders’ equity?
81.
How many of the following events would require an expense to be recorded?
Ordering office supplies
Hiring a receptionist
Paying employees’ salaries for the current month
Receiving but not paying a current utility bill
Paying for insurance in advance
82.
Which of the following is NOT possible for a business transaction?
83.
Which of the following transactions would cause a decrease in both assets and
stockholders’ equity?
84.
When a company issues common stock for cash, what is the effect on the accounting
equation for the company?
85.
If the liabilities of a company increased by $55,000 during a month and the stockholders’
equity decreased by $21,000 during that same month, did assets increase or decrease and
by how much?
86.
Which of the following transactions would cause an increase in both the assets and
liabilities of a company?
87.
When a company pays cash for equipment, what is the effect on the accounting equation
for that company?
88.
“Record revenue when goods or services are provided to customers” is the definition of
which principle in accounting?
89.
Which of the following is possible for a particular business transaction?
90.
Which of the accounts are decreased on the debit side and increased on the credit side?
91.
Which of the following is true about a “debit”?
I. It is part of the double-entry procedure that keeps the accounting equation in balance.
II. It represents an increase to assets.
III. It represents a decrease to liabilities.
IV. It is on the right side of a T-account.
92.
Which of the following is true about a “credit”?
I. It is part of the double-entry procedure that keeps the accounting equation in balance.
II. It represents a decrease to assets.
III. It represents an increase to liabilities.
IV. It is on the right side of a T-account.
93.
Assets normally carry a _______ balance and are shown in the ______________.
94.
Revenues normally carry a _______ balance and are shown in the ______________.