A) Increase assets and decrease liabilities.
B) Decrease one asset and increase another asset.
C) Decrease assets and increase stockholders' equity.
D) Decrease liabilities and increase expenses.
Answer: B
A) Liabilities, stockholders' equity, and revenues.
B) Dividends, liabilities, and assets.
C) Expenses, dividends, and stockholders' equity.
D) Assets, dividends, and expenses.
Answer: A
I. It is part of the double-entry procedure that keeps the accounting equation in balance.
II. It represents an increase to assets.
III. It represents a decrease to liabilities.
IV. It is on the right side of a T-account.
A) I and II.
B) IV only.
C) I, II, and III.
D) I, II, III, and IV.
Answer: C
I. It is part of the double-entry procedure that keeps the accounting equation in balance.
II. It represents a decrease to assets.
III. It represents an increase to liabilities.
IV. It is on the right side of a T-account.
A) I and II.
B) IV only.
C) I, II, and III.
D) I, II, III, and IV.
Answer: D
A) Debit; Statement of stockholders' equity
B) Debit; Income statement
C) Credit; Balance sheet
D) Debit; Balance sheet
Answer: D
A) $34,000 increase.
B) $55,000 increase.
C) $34,000 decrease.
D) $76,000 increase.
Answer: A
A) Pay for the current month's rent.
B) Pay for inventory purchased 90 days ago.
C) Purchase a building by issuing a note payable.
D) Provide services on account.
Answer: C
