ACTG Exam 1 | 100% Correct Answers |
Verified | Latest 2024 Version
Which of the following transactions does not affect the balance sheet totals?
Select one:
A. Paid off a $3,000 note payable
B. Ordered a new machine that will be paid for upon its delivery in two months
C. Purchased $500 supplies on account
D. Received $4,000 cash from a bank after signing a note payable - ✔✔B. Ordered a new machine that
will be paid for upon its delivery in two months
Tobias Company purchased inventory on account. This transaction will affect:
Select one:
A. Only the balance sheet
B. Only the income statement
C. The income statement and the statement of retained earnings
D. The income statement, balance sheet, and statement of retained earnings - ✔✔A. Only the balance
sheet
If assets increase by $50 and liabilities decrease by $30, stockholders' equity must:
Select one:
A. Decrease by $130
B. Remain unchanged
C. Decrease by $70
D. Increase by $80 - ✔✔D. Increase by $80
A T-account consists of how many parts? - ✔✔3 parts
, Which of the following is true?
Select one:
A. The credit is on the left side of a liability account
B. The debit is on the right side of an expense account
C. The debit is on the left side of an asset account
D. The debit is on the right side of an asset account - ✔✔C. The debit is on the left side of an asset
account
Which of the following accounts has a normal debit balance?
Select one:
A. Notes Payable
B. Advertising Expense
C. Accounts Payable
D. Common Stock - ✔✔B. Advertising Expense
Which of the following accounts is increased by a credit?
Select one:
A. Dividends
B. Accounts Receivable
C. Sales Revenue
D. Advertising Expense - ✔✔C. Sales Revenue
Which of the following is true?
Select one:
A. A credit will increase an asset account
B. A debit will increase a liability account
C. A debit will decrease an expense account
D. A credit will increase a revenue account - ✔✔D. A credit will increase a revenue account
Verified | Latest 2024 Version
Which of the following transactions does not affect the balance sheet totals?
Select one:
A. Paid off a $3,000 note payable
B. Ordered a new machine that will be paid for upon its delivery in two months
C. Purchased $500 supplies on account
D. Received $4,000 cash from a bank after signing a note payable - ✔✔B. Ordered a new machine that
will be paid for upon its delivery in two months
Tobias Company purchased inventory on account. This transaction will affect:
Select one:
A. Only the balance sheet
B. Only the income statement
C. The income statement and the statement of retained earnings
D. The income statement, balance sheet, and statement of retained earnings - ✔✔A. Only the balance
sheet
If assets increase by $50 and liabilities decrease by $30, stockholders' equity must:
Select one:
A. Decrease by $130
B. Remain unchanged
C. Decrease by $70
D. Increase by $80 - ✔✔D. Increase by $80
A T-account consists of how many parts? - ✔✔3 parts
, Which of the following is true?
Select one:
A. The credit is on the left side of a liability account
B. The debit is on the right side of an expense account
C. The debit is on the left side of an asset account
D. The debit is on the right side of an asset account - ✔✔C. The debit is on the left side of an asset
account
Which of the following accounts has a normal debit balance?
Select one:
A. Notes Payable
B. Advertising Expense
C. Accounts Payable
D. Common Stock - ✔✔B. Advertising Expense
Which of the following accounts is increased by a credit?
Select one:
A. Dividends
B. Accounts Receivable
C. Sales Revenue
D. Advertising Expense - ✔✔C. Sales Revenue
Which of the following is true?
Select one:
A. A credit will increase an asset account
B. A debit will increase a liability account
C. A debit will decrease an expense account
D. A credit will increase a revenue account - ✔✔D. A credit will increase a revenue account
