A shareholder’s investment of cash into the business will
decrease total assets.
decrease total liabilities.
increase shareholders’ equity
have no effect on total assets.
Purchasing a laptop computer on account will
increase total assets.
have no effect on shareholders’ equity
increase total liabilities.
all of the above.
Performing a service on account will
. increase total assets.
both b and c
Receiving cash from a customer on account will
decrease liabilities.
Purchasing computer equipment for cash will
decrease both total assets and shareholders’ equity
decrease both total liabilities and shareholders’ equity.
have no effect on total assets, total liabilities, or shareholders’ equity
increase both total assets and total liabilities.
Purchasing a building for $110,000 by paying cash of $15,000 and signing a note payable for $95,000 will
decrease total assets and increase total liabilities by $15,000.
increase both total assets and total liabilities by $95,000.
. increase both total assets and total liabilities by $110,000.
decrease both total assets and total liabilities by $15,000.
What is the effect on total assets and shareholders’ equity of paying the telephone bill as soon as it is received each month?
total assets: decrease Shareholders' equity: decrease
Total assets: no effect Shareholders' equity: decrease
Total assets: no effect Shareholders' equity: No effect
Total assets: decrease Shareholders' equity: no effect
Which of the following transactions will increase an asset and increase a liability?
Purchasing office equipment for cash
Paying an account payable
Buying equipment on account
Issuing shares
Which of the following transactions will increase an asset and increase shareholders’ equity?
Performing a service on account for a customer
Borrowing money from a bank
Purchasing supplies on account
Collecting cash from a customer on an account receivable
Where do we first record a transaction?
Journal
Account
Ledger
Trial balance
Which of the following is not an asset account?
Service Revenue
Share Capital
Salary Expense
None of the above accounts is an asset.
Which statement is false?
Dividends are increased by credits.
Assets are increased by debits.
Revenues are increased by credits.
Liabilities are decreased by debits.
The journal entry to record the receipt of land and a building and issuance of ordinary shares
debits Share Capital and credits Land and Building.
debits Land and Building and credits Share Capital.
debits Land and credits Share Capital.
debits Land, Building, and Share Capital
The journal entry to record the purchase of supplies on account
debits Supplies Expense and credits Supplies.
debits Supplies and credits Accounts Payable.
credits Supplies and debits Cash
credits Supplies and debits Accounts Payable.
If the credit to record the purchase of supplies on account is not posted,
liabilities will be understated.
expenses will be overstated.
assets will be understated.
shareholders’ equity will be understated
The journal entry to record a payment on account will
debit Expenses and credit Cash
debit Cash and credit Expenses.
debit Accounts Payable and credit Retained Earnings.
debit Accounts Payable and credit Cash.
If the credit to record the payment of an account payable is not posted,
cash will be overstated
expenses will be understated.
cash will be understated.
A trial balance lists all the accounts with their current balances.
A trial balance can be taken at any time
A trial balance can verify the equality of debits and credits.
A trial balance is the same as a Balance Sheet.
A business’s receipt of a $105,000 building, with a $65,000 mortgage payable and issuance of $40,000 of ordinary shares, will
increase shareholders’ equity by $40,000
increase assets by $65,000.
decrease assets by $65,000
increase shareholders’ equity by $105,000.
. Gartex, a new company, completed these transactions. 1. Shareholders invested $45,000 cash and inventory worth $28,000. 2. Sales on account, $20,000. What will Gartex’s total assets equal?
$93,000
. $73,000
$65,000
$53,000
