Accounts Receivable and Increase

Topics: Accounts receivable, Generally Accepted Accounting Principles, Balance sheet Pages: 19 (2652 words) Published: August 6, 2015
Question 1
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The effect on the accounting equation of the business buying a computer worth $900, paying $450 cash and owing $450 to be paid in 30 days' time is: Select one:
a. decrease the asset computers, increase the asset cash, decrease the liability accounts payable. b. increase the asset computers, increase the asset cash, decrease the liability accounts payable. c. increase the asset computers, decrease the asset cash, increase the liability accounts payable. d. increase the asset computers, decrease the asset cash, decrease the liability accounts payable. Question 2

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If only one side of a $100 transaction is recorded, the imbalance in the worksheet will be: Select one:
a. $100.
b. $200.

c. $50.
d. $0.
Question 3
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The effect on the accounting equation of the business invoicing J. Bird for $1700 for computing services supplied to her on credit is: Select one:
a. an increase in the asset accounts receivable and an increase in profit or loss by $1700 to record the income earned. b. a decrease in the asset cash and an increase in the asset accounts receivable of $1700 to record the amount paid. c. a decrease in the asset accounts receivable and an increase in profit or loss by $1700 to record the income earned. d. an increase in the asset cash and an increase in profit or loss by $1700 to record the income earned. Question 4

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The effect on the accounting equation of the business paying $275 cash for mobile phone charges is: Select one:
c. an increase in the asset cash of $275 and a decrease in profit or loss of $275 to record the phone expense. Question 5
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If a transaction causes an asset account to increase, which of the following effects of equal amount may also occur? Select one:
a. An increase in a liability account.
b. An increase in another asset account.
c. A decrease in a liability account.
d. A decrease in an equity account.
Question 6
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'A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits' is the definition of: Select one:

a. income.
b. a liability.
c. equity.
Question 7
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Omitting a transaction for a cash sale of $6000 from a worksheet will cause the: Select one:
a. assets side of the worksheet to be $6000 more than the liabilities and equity side. b. liabilities and equity side of the worksheet to be $12 000 more than the assets side.

d. assets and liabilities and equity sides of the worksheet to balance; i.e. they will have equal totals. Question 8
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For the accounting equation to balance each transaction must: Select one:
.
b. affect two or more accounts.
c. affect two or less accounts.
d. affect the same number of asset and liability accounts.
Question 9
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For the cash account to decrease and the profit to decrease, the transaction occurring could have been a/an: Select one:
a. purchase of a new printer for the owner's home computer. b. repayment of a loan.
c. agreement with a supplier on the value of the next delivery. d. payment of an electricity bill.
Question 10
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Some of ABC's transactions for the month of October are as follows. Which transaction, if any, is an expense for the month of October? Select one:
a. Purchased a photocopier for $15 000.
b. Paid $1000 off a loan obtained during July.
c. Paid...
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