Any event that has a financial impact on the business & can be measured reliably is a :
transaction
notes payable, accounts payable, taxes payable & salaries payable are examples of:
liabilities
the rules for recording accounting transactions include all of the following except:
both sides of the accounting the equation must be affected
when services are performed on account
accounts receivables is increased
a company received cash in exchange for issuing stock. This transaction increased assets &:
increased equity
when a business purchases land on account:
both assets & liabilities are increased
which of the following transactions will increase stockholders equity:
the company issues common stock to new shareholders
which of the following transactions will increase one asset & decrease another asset?
the purchase of equipment for cash
a company performed services for a customer for cash. This transaction increased assets &:
increased revenues
When cash is paid for utilities:
stockholders equity is decreased
a company performs services for a client on account. When the company receives cash from the customer one later:
an asset account is increased
when a company pays an amount it owes a creditor
assets are decreased & liabilities are decreased
the payment of salaries to employees would:
decrease net income & decrease assets
Muddle company performs a service for one of its customers & immediately collects the cash. This transaction will:
have no effect on liabilites
Purchasing supplies on account would:
increase total assets & increase total liabilites
if a company buys inventory on account:
account payable would increase
receiving a payment from a customer on account:
has no effect on total assets
which of the following transactions would decrease an asset & decrease stockholders equity?
the declaration & payment of a dividend to the stockholders
performing services on account:
increase both net income & stock holders equity
cash dividends paid to stockholders will:
decrease assets & decrease stockholders equity
to compute ending retained earnings on the statement of retained earnings:
net ince