Statements that are true: |
-Assets are increased by debits -Liabilities are decreased by debits -Revenues are increased by credits |
Trial balance |
Trial balance can verify the equality of debits and credits, lists all the accounts with their current balances, and can be taken at any time. |
Which of the following transactions will increase an asset and increase a liability? |
Buying equipment on account |
Receiving cash from a customer on account will… |
have no effect on total assets |
Which of the following is not an asset account? |
None of them (salary expense, common stock, and service revenue) |
If the credit to record the purchase of supplies on account is not posted, |
liabilities will be understated. |
An investment of cash by stockholders into the business will: |
increase stockholder’s equity. |
Purchasing a laptop computer on account will |
have no effect on stockholders’ equity, increase total liabilities, increase total assets. |
Which of the following transactions will increase an asset and increase stockholders’ equity? |
Performing a service on account for a customer. |
The journal entry to record the purchase of supplies on account: |
debits supplies and credits accounts payable. |
Purchasing computer equipment for cash will.. |
have no effect on total assets, total liabilities, or stockholders’ equity |
where do we first record a transaction? |
journal |
If the credit to record the payment of an account payable is not posted, |
cash will be overstated. |
A business’ receipt of a $125,000 building, with a $75,000 mortgage payable, and issuance of $50,000 of common stock will… |
increase stockholders’ equity by $50,000 |
The journal entry to record a payment on account will… |
debit Accounts Payable and credit cash. |
The journal entry to record the receipt of land and a building and the issuance of common stock.. |
debits land and building and credits common stock. |
what is the effect on total assets and stockholders’ equity of paying the telephone bill as soon as it received each month? |
Decrease on total assets, Decrease on Stockholders’ equity |
Performing a service on account will |
increase total assets and stockholders’ equity. |
Chapter 2 Quiz
Share This
Unfinished tasks keep piling up?
Let us complete them for you. Quickly and professionally.
Check Price