An investment of cash into the business will |
Increase stockholders equity |
Purchasing a computer on account will |
Increase total assets, total liabilities, and have no effect on stockholders' equity. (All of the above) |
Performing service on account will |
Increase total assets and stockholders equity (Both a and b) |
Receiving cash from a customer on account will |
have no effect on total assets |
Purchasing a computer equipment for cash will |
have no effect on total assets, total liabilities, or stockholders equity |
Purchasing a building for $100,000 |
Increase both total assets and total liabilities by $80,000 |
What is the effect on total assets and stockholders equity of paying the electric bill as soon as it is received each month |
Decrease on total assets and stockholders equity |
Which of the following transactions will increase an asset and liability |
Buying equipment on account |
Will increase an asset and increase stockholders equity |
performing a service on account for a customer |
Where do we first record a transaction |
Journal |
Which of the following is not an asset account |
None of the above is an asset |
Which statement is false |
Dividends are increased by credits |
The journal entry to record the receipt of land and a building and issuance of common stock |
Debits land and building and credit common stock |
The journal entry to record the purchase of supplies on account |
Debits supplies and credits accounts payable |
If the credit to record the purchase of supplies on account is not posted |
Liabilities will be understated |
The journal entry to record a payment on account will |
Debits accounts payable and credit cash |
If the credit to record the payment of an account payable is not posted |
cash will be overstated |
Which statement is false |
A trial balance is the same as a balance sheet |
A business's purchase of a $100,000 building with an $85,000 mortgage |
Increase stockholders equity by $15,000 |
Martex, inc. , a new company |
$87,000 |