Ques 3
Answer: B:Increase owner's equity and liabilities
a payment owed to supplier means we have an obligation to pay to the supplier , so we have to show them as creditors in the books. creditors are shown in the liabilities side of the balance sheet
Ques 4:
B)Assets-liabilities=Owner's equity
Original equation is
Assets=liabilities + owner's equity
So rearranging the equation we get
Assets-liabilities=Owner's equity
3) The payment of an amount owed to a supplier would: A) have no effect on...
Collection of an account receivable would: O A. have no effect on owner's equity B. decrease owner's equity O C. increase total assets D. decrease liabilities
Effect of Transactions on Accounting Equation a. A vacant lot acquired for $448,500 is sold for $865,500 in cash. What is the effect of the sale on the total amount of the seller's (1) assets, (2) liabilities, and (3) owner's equity? If there is no change, select 'No change' from the dropdown and then enter a 'O' in the amount box. Effect Amount 1. Total Assets Increased $ 417,000 2. Total Liabilities No Change 3. Owner's Equity Increased $ 417,000...
A purchase of a vehicle on credit would have what effect on the accounting equation? O A. Total Owner's Equity is overstated. O B. Total Liabilities are overstated O C. Total Assets and total Liabilities increase O D. Both A and B are correct. Click to select your answer. 1T ype here to search Items owned by the business such as land, supplies, and equipment are: O A. Assets. O B. Expenses O C. Liabilities. O D. Owner's Equity Click...
Indicate the effect of the following transaction on the elements of the accounting equation. Purchased land by signing a nine-month, non-interest-bearing note payable. assets increase; liabilities increase assets decrease; liabilities decrease assets increase; owner's equity increase assets increase; owner's equity decrease Question 2 3 pts Received $12,000 cash for services provided to a customer. debit accounts receivable; credit fees earned debit cash; credit fees earned debit fees earned; credit cash debit cash; credit supplies expense Account used to record amounts...
Q1-5 Multiple Choice Questions (20 points) Circle the right answer 1) Which of the following is the CORRECT accounting equation? A) Assets + Liabilities - Owners' equity B) Assets - Liabilities + Owners' equity C) Assets + Revenue - Owners' equity D) Assets + Revenue Liabilities + Expenses 2) Owner's equity is $150,000 and total liabilities are $90,000. Total assets would be: A) $300.000 B) S180,000. C) $60,000. D) $240,000 150, 900 90,000 3) A business settles a liability by...
2. (4 pts) What would be the effect on the financial statements, of recording the purchase of a forklift for $20,000? A down payment of $4,000 was made and a six-month note at 10% interest was signed for life of four years and a $4,000 salvage value. Straight-line depreciation will be used. The truck was purchased January 1st and the company's year-end is December 31st For each type of account, indicate the dollar ($) amount of the increase or decrease...
Sunfish & Company collected $8,000 from an outstanding account receivable. What would be the effect of this transaction on the accounting equation? Select one: A. Assets Liabilities Shareholders' Equity No Effect No Effect No Effect B. Assets Liabilities Shareholders' Equity Increase $8,000 No Effect Increase $8,000 C. Assets Liabilities Shareholders' Equity Decrease $8,000 Decrease $8,000 No Effect D. Assets Liabilities Shareholders' Equity Increase $8,000 Decrease $8,000 No Effect
EX 1-6 Accounting equation A. $1,895,000 Determine the missing amount for each of the following AssetsLlabilities + Stockholders' Equity A. B. $776,500$588,800 C. $14,750,000-$4,455,000 + 5550,000 $1,345,000 SHOW ME N EX 1-7 Accounting equation Obj. 3, 4 B. $4,120,000 Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 2017, Inspirational has assets of $5,250,000 and liabilities of $1,600,000. Using the accounting equation and considering each case independently, determine the following amounts: A. IE...
2. $1,895,000 EX 1-6 Accounting equation Determine the missing amount for each of the following: Assets abilities Stockholders' Equity - $550,000 + $1,345,000 b. 5776,500 - X + $588,800 C$14.750,000 - 54,455,000 + 54,120,000 EX 1-7 Accounting equation Obj. 3,4 Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 20Y2, Inspirational has assets of $5,250,000 and liabilities of $1,600,000. Using the accounting equation and considering each case independently, determine the following amounts: a....
1. Which of the following is something of value owned by the company? (a)Cash (b) Common Stock (c) Supplies Expense (d) Notes Payable 2. Windward Inc. makes a payment of $500 on its accounts payable. How does this effect the accounting equation? a. Assets decrease and Liabilities decrease b. Assets increase and Equity Decreases c. Assets decrease and Equity decreases d. Assets increase and Liabilities increase e. Assets decrease and Liabilities increase 3. Chitron Corporation earns $750 working for a...