A) Increase assets and decrease revenue.
B) Decrease assets and increase expenses.
C) Increase liabilities and increase expenses.
D) Decrease liabilities and increase revenue.
Answer: A
A) Paying insurance premium for the next two years.
B) Purchasing office equipment on account.
C) Paying advertising for the current month.
D) Providing services to customers on account.
Answer: C
A) Assets increase and liabilities increase.
B) Assets increase and stockholders' equity increases.
C) Assets decrease and liabilities decrease.
D) Liabilities decrease and stockholders' equity increases.
Answer: B
Issued common stock for cash, $5,000.
Provided services to customers on account, $2,000.
Provided services to customers in exchange for cash, $900.
Purchased equipment and paid cash, $4,300.
Paid April rent, $800.
Paid employees' salaries for April, $700.
What was Sallisaw's retained earnings balance at the end of April?
A) $11,400.
B) $12,100.
C) $16,400.
D) Some other amount.
Answer: A
Consider the following transactions:
Issued common stock for cash.
Purchased equipment by signing a note payable.
Provided services to customers on account.
Collected cash from customers on account.
A) One.
B) Two.
C) Three.
D) Four.
Answer: A
A) Pay dividends to stockholders.
B) Obtain cash by borrowing from a local bank.
C) Provide services to customers on account.
D) Purchase office equipment for cash.
Answer: A
Ordering office supplies.
Hiring a receptionist.
Paying employees' salaries for the current month.
Receiving, but not paying, a current utility bill.
Paying for insurance in advance.
A) One.
B) Two.
C) Three.
D) Four.
Answer: B
