Accounting 211 - Ch 1 SB Exam
Questions and Answers Graded A+
Paying administrative salaries with cash affects which of the following financial
statements?
Income statement
Total stockholders' equity on the balance sheet
Total assets on the balance sheet
Total liabilities on the balance sheet - Correct answer-Income statement
Total stockholders' equity on the balance sheet
Total assets on the balance sheet
Selling inventory for cash results in which of the following? Assume inventory is
sold for more than it cost to produce
Increases liabilities.
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, The transaction does not affect net income.
The transaction does not affect total assets.
The transaction does not affect liabilities.
Increases net income.
Decreases liabilities.
Decreases net income.
The transaction does not affect stockholders' equity.
Decreases inventory.
Increases stockholders' equity.
Increases cash.
Decreases stockholders' equity. - Correct answer-The transaction does not affect
liabilities.
Increases net income.
Decreases inventory.
Increases stockholders' equity.
Increases cash.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Questions and Answers Graded A+
Paying administrative salaries with cash affects which of the following financial
statements?
Income statement
Total stockholders' equity on the balance sheet
Total assets on the balance sheet
Total liabilities on the balance sheet - Correct answer-Income statement
Total stockholders' equity on the balance sheet
Total assets on the balance sheet
Selling inventory for cash results in which of the following? Assume inventory is
sold for more than it cost to produce
Increases liabilities.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, The transaction does not affect net income.
The transaction does not affect total assets.
The transaction does not affect liabilities.
Increases net income.
Decreases liabilities.
Decreases net income.
The transaction does not affect stockholders' equity.
Decreases inventory.
Increases stockholders' equity.
Increases cash.
Decreases stockholders' equity. - Correct answer-The transaction does not affect
liabilities.
Increases net income.
Decreases inventory.
Increases stockholders' equity.
Increases cash.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
