Questions from Financial Accounting

Q: An investment of cash into the business will a. Decrease

An investment of cash into the business will a. Decrease total liabilities. b. Decrease total assets. c. Have no effect on total assets. d. Increase stockholders’ equity.

Q: Purchasing a laptop computer on account will a. Increase total

Purchasing a laptop computer on account will a. Increase total assets. b. Have no effect on stockholders’ equity. c. Increase total liabilities. d. All of the above.

Q: Requiring that an employee with no access to cash do the accounting

Requiring that an employee with no access to cash do the accounting is an example of which characteristic of internal control? a. Monitoring of controls b. Competent and reliable personnel c. Assignme...

Q: Performing a service on account will a. Increase stockholders’ equity

Performing a service on account will a. Increase stockholders’ equity. b. Increase total assets. c. Increase total liabilities. d. Both a and b.

Q: Receiving cash from a customer on account will a. Increase

Receiving cash from a customer on account will a. Increase stockholders equity. b. Decrease liabilities. c. Increase total assets. d. Have no effect on total assets.

Q: Purchasing computer equipment for cash will a. Increase both total

Purchasing computer equipment for cash will a. Increase both total assets and total liabilities. b. Decrease both total assets and stockholders’ equity. c. Decrease both total liabilities and stockhol...

Q: Purchasing a building for $95,000 by paying cash of

Purchasing a building for $95,000 by paying cash of $25,000 and signing a note payablefor $70,000 will a. Decrease total assets and increase total liabilities by $25,000. b. Decrease both total assets...

Q: What is the effect on total assets and stockholders’ equity of paying

What is the effect on total assets and stockholders’ equity of paying the telephone bill assoon as it is received each month? Total assets _______Stockholders’ equity a. Decrease ………………………………… Decreas...

Q: Which of the following transactions will increase an asset and increase a

Which of the following transactions will increase an asset and increase a liability? a. Purchasing office equipment for cash b. Issuing stock c. Buying equipment on account d. Payment of an account pa...

Q: Which of the following transactions will increase an asset and increase stockholders’equity

Which of the following transactions will increase an asset and increase stockholders’equity? a. Collecting cash from a customer on an account receivable b. Borrowing money from a bank c. Performing a...