Info
Warning
Danger
/ Homework Answers / Accounting / 11) Martin Supply Service received $1,000 cash from a customer

Question

11) Martin Supply Service received $1,000 cash from a customer which was owed to the business from the previous month. Which of the following accounts would decrease as a result of this transaction?

A) Cash

B) Equity

C) Accounts Payable

D) Accounts Receivable

12) Ace Inc. had the following transactions in June: Sold goods for $4,000 on account; received cash on account, $5,000; paid $800 for repair expense; paid $2,000 to a supplier that it owed from the previous month. What is the combined effect on Cash of the June transactions?

A) $2,200 increase

B) $2,200 decrease

C) $5,000 increase

D) $2,800 decrease

13) The equity of Autumn Company is $150,000 and the total liabilities are $90,000. Its total assets would be:

A) $300,000.

B) $180,000.

C) $60,000.

D) $240,000.

14) Venus Inc. paid $5,000 for account payable. How does this transaction affect the accounting equation of Venus?

A) Assets decrease by $5,000 and equity increases by $5,000.

B) Assets decrease by $5,000 and liabilities decrease by $5,000.

C) Assets increase by $5,000 and equity decreases by $5,000.

D) Assets increase by $5,000 and liabilities increase by $5,000.

15) The assets of Moon Company are $150,000 and liabilities are $90,000. The equity will be:

A) $180,000.

B) $300,000.

C) $240,000.

D) $60,000.

16) The assets of Sunlight Company are $270,000 and equity is $90,000. Liabilities will be:

A) $60,000.

B) $360,000.

C) $270,000.

D) $180,000.

17) Lush Lawns performs lawn mowing services for its customers. The payments for the current month's services are expected to be received next month. How does this transaction affect the accounting equation of Lush Lawn?

A) Liabilities increase; equity decreases.

B) Assets increase; equity increases.

C) Assets decrease; equity decreases.

D) Liabilities increase; equity increases.

18) A business receives a bill from one of its suppliers for services received. The business will pay the supplier next month. How does the receipt of the bill from the supplier affect the accounting equation of the business?

A) Assets decrease; equity decrease.

B) Liabilities increase; equity decrease.

C) Assets increase; liabilities increase.

D) Liabilities increase; equity increase.

19) A business settles a liability by making a payment in cash. How does paying this liability affect the accounting equation of the business?

A) Assets decrease; liabilities decrease.

B) Liabilities decrease; equity increases.

C) Assets increase; liabilities increase.

D) Assets increase; equity decreases.

20) Land was originally purchased for $20,000. It is sold for $20,000 in cash. How does the sale affect the accounting equation?

A) Assets increase by $20,000; liabilities decrease by $20,000.

B) Assets increase by $20,000; liabilities increase by $20,000.

C) Assets increase by $20,000; equity increases by $20,000.

D) Assets increase by $20,000; assets decrease by $20,000.

Solution
5 (1 Ratings )

Solved
Accounting 1 Month Ago 4 Views
This Question has Been Answered!
Premium Content -

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Thank You For Registering

Please Vreify Your Email Address

Resend Link
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

d
Let us boost your grade together!