Accounting Exam 1 Questions + Answers
Posted: Tue Aug 03, 2021 6:42 am
When the principal of a loan is repaid, total stockholders' equity is decreased T/F
False
A company's January 1, 2014 balance sheet reported total assets of $120,000 and total liabilities of $40,000. During January 2014, the following transactions occurred: (A) the company issued stock and collected cash totaling $30,000; (B) the company paid an account payable of $6,000; (C) the company purchased supplies for $1,000 with cash; (D) the company purchased land for $60,000 paying $10,000 with cash and signing a note payable for the balance. What is total stockholders' equity after the transactions above?
$110,000
The Buddy Burger Corporation owes $1.5 million to the Texas Wholesale Meat Company from whom Buddy Burger buys its burger meat. Which account would Buddy Burger use to report the amount owed?
Accounts Payable
Which of the following accounts are increased by a credit?
Accounts Payable and Contributed Capital
Select the answer that best describes the entry that is required to enter the following transaction in the company's accounting system: Company paid $600 for supplies previously purchased on account in prior month. The supplies have not yet been used.
Total assets decrease.
During March, the Better Living Consulting Company provides $23,000 in consulting services of which $12,000 is immediately paid for and $11,000 is on account.
Cash increases $12,000, Accounts Receivable increases $11,000, and revenues increase $23,000.
False
A company's January 1, 2014 balance sheet reported total assets of $120,000 and total liabilities of $40,000. During January 2014, the following transactions occurred: (A) the company issued stock and collected cash totaling $30,000; (B) the company paid an account payable of $6,000; (C) the company purchased supplies for $1,000 with cash; (D) the company purchased land for $60,000 paying $10,000 with cash and signing a note payable for the balance. What is total stockholders' equity after the transactions above?
$110,000
The Buddy Burger Corporation owes $1.5 million to the Texas Wholesale Meat Company from whom Buddy Burger buys its burger meat. Which account would Buddy Burger use to report the amount owed?
Accounts Payable
Which of the following accounts are increased by a credit?
Accounts Payable and Contributed Capital
Select the answer that best describes the entry that is required to enter the following transaction in the company's accounting system: Company paid $600 for supplies previously purchased on account in prior month. The supplies have not yet been used.
Total assets decrease.
During March, the Better Living Consulting Company provides $23,000 in consulting services of which $12,000 is immediately paid for and $11,000 is on account.
Cash increases $12,000, Accounts Receivable increases $11,000, and revenues increase $23,000.