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Amounts owed to suppliers for supplies purchased on account are defined as

 

 

65. Amounts owed to suppliers for supplies purchased on account are defined as:

a. Cash.

b. Accounts Receivable.

c. Accounts Payable.

d. Supplies Expense.

 

 

66. Purchasing office supplies on account will:

a. Not change assets.

b. Increase assets and decrease liabilities.

c. Increase assets and increase liabilities.

d. Increase assets and increase stockholders’ equity.

 

 

67. Providing services and receiving cash will:

a. Increase assets and increase stockholders’ equity.

b. Increase assets and increase liabilities.

c. Decrease assets and increase liabilities.

d. Decrease liabilities and increase stockholders’ equity.

 

 

68. When a company provides services on account, the accounting equation would be affected as follows:

a. Assets increase.

b. Revenues increase.

c. Assets increase and liabilities decrease.

d. Assets increase and stockholders’ equity increases.

 

 

69. If a company provides services on account, which of the following is true?

a. Expenses increase.

b. Liabilities increase.

c. Stockholders’ equity increases.

d. Assets decrease.

 

 

70. When a payment is made on an account payable:

a. Assets and stockholders’ equity decrease.

b. Assets and liabilities decrease.

c. Liabilities and revenues decrease.

d. Assets and expenses decrease.

 

 

71. Purchasing office equipment on account has what impact on the accounting equation?

a. Stockholders’ equity decreases and assets increase.

b. Liabilities increase and assets increase.

c. Assets decrease and liabilities decrease.

d. Assets increase and stockholders’ equity increases.

 

 

72. Purchasing supplies for cash has what effect on the accounting equation?

a. Increase assets.

b. Decrease stockholders’ equity.

c. Decrease liabilities.

d. No effect.

 

 

73. The Unearned Revenue account is shown in which statement?

a. Income statement.

b. Statement of cash flows.

c. Balance sheet.

d. Statement of stockholders’ equity.

 

 

74. On January 1, Brad Inc. sold $30,000 in products to a customer on account. Then on January 10, Brad collected the cash on that account. What is the impact on Brad’s accounting equation from the collection of cash on January 10?

a. No net effect to the accounting equation.

b. Assets increase and liabilities decrease.

c. Assets decrease and liabilities decrease.

d. Assets increase and stockholders’ equity increases.

Jan 27 2020 View more View Less

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