Solution Manual for Accounting Principles Volume 1 & Volume
2, 9th Canadian Edition Jerry J. Weygandt, Verified Chapters 1
- 20, Complete Newest Version
Which of the following transactions results in the recognition of an inventory asset
for Warren Company?
A. Warren Company agrees to buy inventory from Feltz Company during the next
quarter.
B. Warren Company bought inventory from Feltz Company last quarter.
C. Feltz Company bought inventory from Warren Company last quarter.
D. Warren Company agrees to buy inventory from Feltz Company at the end of the
current quarter. - ANSWER: B. Warren Company bought inventory from Feltz
Company last quarter.
Which of the following transactions results in the recognition of a liability for Cobra
Inc.?
A. Cobra Inc. agrees to buy inventory on account from Snake Inc. during the next
quarter.
B. Snake Inc. bought inventory from Cobra Inc. during the previous quarter. Snake
paid cash and the inventory was delivered.
C. Cobra Inc. bought inventory from Snake Inc. on account during the current period.
The inventory was delivered.
D. Snake Inc. bought inventory on account from Cobra Inc. during the current period.
The inventory was delivered. - ANSWER: C. Cobra Inc. bought inventory from Snake
Inc. on account during the current period. The inventory was delivered.
Groeninger Company holds the following partial list of assets: Property and
Equipment $100,000; Inventory $45,000; Cash $20,000; Accounts Receivable
$30,000. In what order would the first and second section of the balance sheet
report accounts and dollar amounts in?
A. Cash $20,000, Inventory $45,000, Property and Equipment $100,000, Accounts
Receivable $30,000.
B. Cash $20,000, Inventory $45,000, Accounts Receivable $30,000, Property and
Equipment $100,000.
C. Property and Equipment $100,000, Inventory $45,000, Accounts Receivable
$30,000, Cash $20,000.
D. Cash $20,000, Accounts Receivable $30,000, Inventory, $45,000, Property and
Equipment $100,000. - ANSWER: D. Cash $20,000, Accounts Receivable $30,000,
Inventory, $45,000, Property and Equipment $100,000.
Which of the following items represents a component of owner's equity for a
corporation?
A. Common Stock
B. Note Payable
C. Investments
, D. Dividends Payable - ANSWER: A. Common Stock
The main balance sheet categories equal $240,000, $260,000 and $500,000. What
would the basic accounting equation allow you to determine?
A. Total Assets = $500,000
B. Total Liabilities = $500,000
C. Total Equity = $500,000
D. Total Cash = $260,000 - ANSWER: A. Total Assets = $500,000
Jones, Inc. issued $5,000 of equity stock, receiving cash from investors. What are the
effects on the accounting equation?
A. Increase in Assets $5,000, Increase in Liabilities $5,000
B. Increase in Liabilities $5,000, Increase in Equity $5,000
C. Decrease in Assets $5,000, Increase in Equity $5,000
D. Increase in Assets $5,000, Increase in Equity $5,000 - ANSWER: D. Increase in
Assets $5,000, Increase in Equity $5,000
Smith, Inc. borrows $6,000 from a local bank. What are the effects on the accounting
equation?
A.Increase Assets $6,000, Increase Liabilities $6,000
B.Increase Assets $6,000, Increase Equity $6,000
C.Increase Liabilities $6,000, Increase Equity $6,000
D.Decrease Assets $6,000, Increase Liabilities $6,000 - ANSWER: A.Increase Assets
$6,000, Increase Liabilities $6,000
Yancy, Inc. paid $2,000 in wages to employees for work performed in the same week
the wages were paid. What are the effects on the accounting equation?
A. Increase Assets $2,000, Increase Liabilities $2,000
B. Increase Assets $2,000, Increase Equity $2,000
C. Decrease Assets $2,000, Decrease Liabilities $2,000
D. Decrease Assets $2,000, Decrease Equity $2,000 - ANSWER: D. Decrease Assets
$2,000, Decrease Equity $2,000
Which of the following statements is true about the meaning of the accounting term
"debit"?
A. Debit means a reduction in a company's assets
B. Debit means the left side of an account.
C. Debit means the increase of an equity account.
D. Debit means an increase in a company's liabilities. - ANSWER: B. Debit means the
left side of an account.
Which of the following statements is true about the meaning of the accounting term
"credit"?
A. Credit means an increase in a company's assets.
B. Credit means a reduction in a company's liabilities.
C. Credit means the right side of an account.
2, 9th Canadian Edition Jerry J. Weygandt, Verified Chapters 1
- 20, Complete Newest Version
Which of the following transactions results in the recognition of an inventory asset
for Warren Company?
A. Warren Company agrees to buy inventory from Feltz Company during the next
quarter.
B. Warren Company bought inventory from Feltz Company last quarter.
C. Feltz Company bought inventory from Warren Company last quarter.
D. Warren Company agrees to buy inventory from Feltz Company at the end of the
current quarter. - ANSWER: B. Warren Company bought inventory from Feltz
Company last quarter.
Which of the following transactions results in the recognition of a liability for Cobra
Inc.?
A. Cobra Inc. agrees to buy inventory on account from Snake Inc. during the next
quarter.
B. Snake Inc. bought inventory from Cobra Inc. during the previous quarter. Snake
paid cash and the inventory was delivered.
C. Cobra Inc. bought inventory from Snake Inc. on account during the current period.
The inventory was delivered.
D. Snake Inc. bought inventory on account from Cobra Inc. during the current period.
The inventory was delivered. - ANSWER: C. Cobra Inc. bought inventory from Snake
Inc. on account during the current period. The inventory was delivered.
Groeninger Company holds the following partial list of assets: Property and
Equipment $100,000; Inventory $45,000; Cash $20,000; Accounts Receivable
$30,000. In what order would the first and second section of the balance sheet
report accounts and dollar amounts in?
A. Cash $20,000, Inventory $45,000, Property and Equipment $100,000, Accounts
Receivable $30,000.
B. Cash $20,000, Inventory $45,000, Accounts Receivable $30,000, Property and
Equipment $100,000.
C. Property and Equipment $100,000, Inventory $45,000, Accounts Receivable
$30,000, Cash $20,000.
D. Cash $20,000, Accounts Receivable $30,000, Inventory, $45,000, Property and
Equipment $100,000. - ANSWER: D. Cash $20,000, Accounts Receivable $30,000,
Inventory, $45,000, Property and Equipment $100,000.
Which of the following items represents a component of owner's equity for a
corporation?
A. Common Stock
B. Note Payable
C. Investments
, D. Dividends Payable - ANSWER: A. Common Stock
The main balance sheet categories equal $240,000, $260,000 and $500,000. What
would the basic accounting equation allow you to determine?
A. Total Assets = $500,000
B. Total Liabilities = $500,000
C. Total Equity = $500,000
D. Total Cash = $260,000 - ANSWER: A. Total Assets = $500,000
Jones, Inc. issued $5,000 of equity stock, receiving cash from investors. What are the
effects on the accounting equation?
A. Increase in Assets $5,000, Increase in Liabilities $5,000
B. Increase in Liabilities $5,000, Increase in Equity $5,000
C. Decrease in Assets $5,000, Increase in Equity $5,000
D. Increase in Assets $5,000, Increase in Equity $5,000 - ANSWER: D. Increase in
Assets $5,000, Increase in Equity $5,000
Smith, Inc. borrows $6,000 from a local bank. What are the effects on the accounting
equation?
A.Increase Assets $6,000, Increase Liabilities $6,000
B.Increase Assets $6,000, Increase Equity $6,000
C.Increase Liabilities $6,000, Increase Equity $6,000
D.Decrease Assets $6,000, Increase Liabilities $6,000 - ANSWER: A.Increase Assets
$6,000, Increase Liabilities $6,000
Yancy, Inc. paid $2,000 in wages to employees for work performed in the same week
the wages were paid. What are the effects on the accounting equation?
A. Increase Assets $2,000, Increase Liabilities $2,000
B. Increase Assets $2,000, Increase Equity $2,000
C. Decrease Assets $2,000, Decrease Liabilities $2,000
D. Decrease Assets $2,000, Decrease Equity $2,000 - ANSWER: D. Decrease Assets
$2,000, Decrease Equity $2,000
Which of the following statements is true about the meaning of the accounting term
"debit"?
A. Debit means a reduction in a company's assets
B. Debit means the left side of an account.
C. Debit means the increase of an equity account.
D. Debit means an increase in a company's liabilities. - ANSWER: B. Debit means the
left side of an account.
Which of the following statements is true about the meaning of the accounting term
"credit"?
A. Credit means an increase in a company's assets.
B. Credit means a reduction in a company's liabilities.
C. Credit means the right side of an account.
