Answered: Which among the following transactions…

Which among the following transactions would have n equity? O a. Drawings made by the owner O b. Investment by the owner OC. O c. Purchase of supplies on credit

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 11MC: Which of the following would trigger a subtraction in the indirect operating section? A. gain on...

See similar textbooks

Related questions

Q: Which of the following accounts is an asset? Select one: O a. Accounts payable O b. Salary expense…

A: STEP 1 An asset is something or attribute that creates future economic cash flows or benefit arising…

Q: The accounting equation may be expressed as(a) Assets = Liabilities - Owner's Equity.(b) Assets =…

A: The different accounts in business balance sheet are described as assets, liabilities and owner's…

Q: Which of the given series have the same effect on Owners' Equity? Select one: a. Owner's Drawings…

A: Owner's equity indicates the owner's balance in the firm it can be calculated by the following…

Q: explain the connections between the income statement, balance sheet, cash flow statement, and…

A: The income statement, balance sheet, cash flow statement, and statement will be explained:

Q: The standard accounting equation Assets - Liabilities = Owner's Equity allows the analysis of normal…

A: The question is related to True and False. The basic Accounting equation ia as under Assets =…

Q: What is the formula used to calculate Owner's Equity on a balance sheet? Question 4 options:…

A: The fundamental Accounting equation is Asset = liabilities + equity Therefore Equity = Asset -…

Q: choose the right answer Of the following account types, which would be increased by a debit?…

A: I assumed the first MCQ as first question And next MCQ as second question.

Q: Which of the following accounts are under owners equity? O a. Unearned revenue O b. Cash O .…

A: Solution: Retained earnings are undistributed profits of the company that are retained by the…

Q: What's the income statement, owners equity and balance sheet

A: Income statement: It is one of the financial statements prepared to know the net income made by the…

Q: Identify the effect of the account titles in the following transaction choose from the word inside…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: Which one of the following increases the current liabilities of a business entity? Select one: a.…

A: Liabilities are know as the financial obligation or financial debt which has to payable by the…

Q: Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3)…

A: Classify each of the following:

Q: Define Accounting and its importance in the field of business.Define owner’s equity and how it is…

A: Accounting is a system that identifies ,records and communicates relevant information that is…

Q: Transactions that affect the debit and creditof the following: A. Cash B. Accounts Receivable C.…

A: A credit is often positioned on the correct aspect of AN entry. It will increase liability, revenue…

Q: Consider the following accounts and identify each account as an asset (A), liability (L), or equity…

A: The assets accounts are those accounts which is going to provide benefit to the firm in future or…

Q: Which of the following accounts will be used in equation, if the goods are sold on * ?credit to Mr.…

Q: The debit side of an account a.is the left side of the account b.is the right side of the account…

A: Each Account has two sides debit and credit side.

Q: Identify the effect of the account titles in the following transaction choose from the word inside…

A: As advised, we will solve the 4th and 5th question for you. Capital refers to the financial assets…

Q: Which if the correct Journal Entry for 'Income Received in Advance' O a. Income A/c Debit, To…

A: Journal entry/; A journal entry is a record of the business transactions within the accounting books…

Q: Which of the following accounts is an owners equity account ? A.Account payable B.Prepaid expenses…

A: Owners Equity Account It is the owners' investment in an asset after all liabilities have been…

Q: Based on the balance sheet that given, calculate and explain the A. Liability ratio B. Asset ratio…

A: Ratio analysis is very important technique of analysis and review. Various types of ratios are…

Q: Which one of the following account groups normally has a credit balance? O A. assets and liabilities…

A: 1.Assets - It includes:- Current assets long term investments fixed assets intangible assets other…

Q: 2. Indicate whether each of the following items is: an Asset , liability, or part of Owner's equity.…

A: Asset: In Financial terms, assets are anything that is held by a business that results in some…

Q: Asset, liability, and owner's equity items Indicate whether each of the following is identified…

A: The balance sheet displays the assets, liabilities and owners' equity of the business.

Q: Owner's equity can be increased through a. withdrawals by the owner O b. investments by the owner O…

A: The question is based on the concept of Accounting Theory.

Q: Classify each of the following accounts as either an asset (A), liability (L), or equity (EQ)…

A: Account: It can be defined as a record that is maintained in the accounting system to track the…

Q: Which of the following account is considered as non-item of Owner Equity? Prepaid insurance. а.…

A: owners equity consists of - common share capital retained earnings net profit

Q: Asset (A), Liability (L), or Equity (E)? a. Interest Revenue b. Accounts Payable C. Calhoun, Capital…

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

Q: The owners' claims to the assets of the business are called ________. A.equity B.expenses…

A: As per the accounting equation, Assets = Liabilities + Equity and such relation always holds true.

Q: Which one of the following accounts is the most liquid? Select one: a. Building. b. Inventory. c.…

A: Liquid accounts signify the short term assets or current assets.

Q: Which of these accounts is an asset? A. Common Stock B. Supplies C. Accounts Payable D. Fees Earned

A: Introduction: Assets: Asset means having Economic value to the resource. Assets are of two types: 1…

Q: II. Classify the following whether it is an Asset (A), Liability (L), Capital (C), Income (), or…

A: Accounting equation is given as under: ASSETS = EQUITY + LIABILITIES

Q: Which of the following options is correct in relation to preparing balance sheet? Select one: a. It…

A: The statement depicting the final position of an organization and helping the stakeholders to get an…

Q: Classify each of the following accounts as an asset (A), liability (L), or equity (EQ) account.

A: Assets: An asset is a resource with economic value that an individual, corporation, or country owns…

Q: Which of the following transactions will increase an asset and increase a liability?a. Purchasing…

A: An assets is a resource having an economic value that generates positive cash flow in the future for…

Q: Which among the following transactions would have no effect on equity? O a. Drawings made by the…

A: Equity is the amount of investment made by owner of a company.it has effect of profit or loss and…

Q: NEED ANSWER ASAP Q: USING THE BALANCE SHEET PROVIDED, WHAT IS THE AVERAGE OWNER'S EQUITY? EXPLAIN

A: Shareholders Equity: It is the amount which invested by the owners of the company in the business…

Q: Which of the following is the correct Basic Accounting Equation Oa ASSET + LIABILITIES= STOCK…

A: Accounting equation depicts the relationship between liabilities, assets and stockholders' equity of…

Q: Owner's equity can be increased through _____. a. withdrawals by the owner b. purchase of assets by…

A: Solution: Withdrawl by owner decrease the owner's equity Purchase of assets by cash do not affect…

Q: Select any 5 Q1 transactions of your choice and put them into the basic accounting equations. Find…

A: Five financial transactions are: 1) Mr. X commenced business with $50000 2) machinery purchased for…

Q: What item appears on both the balance sheet and the statement of owners equity?

A: The items appear both on balance sheet and statements of owners’ equity are as follows:Beginning…

Q: A debit is used to increase which of the following accounts? a. Utilities Expense.b. Accounts…

A: Definition: Normal balance: Normal balance refers to the excess of the amount on one side, over the…

Q: Owner's equity can be increased through, O a. withdrawals by the owner O b. expenses exceeding…

A: Withdrawals decreases the owner's equity. Expenses exceeding revenues results in loss further…

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Which among the following transactions would have no effect on
equity?
a.
Drawings made by the owner
O b. Investment by the owner
Purchase of supplies on credit
O d. Retained earnings of the business

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following is an expense? a.Purchases b.Dividend received c.Sales d.Rent received
What is the owner’s right to the assets (claims to the assets) of the business called? Group of answer choices cash revenue accounts receivable owner’s equity or capital
Which of the following items will not be shown in the balance sheet of ahotel? A. customer loyalty value B. accounts payable C. Intangible assets D. accrued taxes
Which of the application of of a. Presenting a the related s b. Deducting fe gains and pr c. Deducting u trading secu d. Deducting a account and
Which of the following would be classified as a cash outflow from an operating activity? a. Purchase of an investment b. Payment of dividends c. Purchase of equipment d. Payment of goods purchased from suppliers
Which of the following would trigger a subtraction in the indirect operating section? A. gain on sale of investments B. depreciation expense C. decrease in accounts receivable D. decrease in bonds payable
Which of the following is not a criterion to recognize revenue under GAAP? A. The earnings process must be completed. B. A product or service must be provided. C. Cash must be collected. D. GAAP requires that the accrual basis accounting principle be used in the revenue recognition process.
How is the valuation of cuIrent assets affected if the company follows IFRS? ( OValuation is based on historical cost. OValuation is based on market adjustments. OValuation is based on LCM accounting. O Assets are expensed immediately. Aliability created for receiving cash for future services to be provided is termed O service revenue. O estimated warranty payable. Ounearned revenue. Oaccrued liability.
Accounting type Question: Which of the following is a non operating expense? A. Salary of Managing Director B. Depreciation C. Advertisement expenditure D. Interest on loan
Profit is the difference between?a. Assets and liabilitiesb. Assets and equitiesc. The assets purchased with the cash contributed by the owner and the cash spent to operate the businessd. The assets received for goods and services and the amounts used to provide the goods and services
What business record shows the results of the proprietorship’s borrowing assets from the business, usually anticipation of profits? A. Proprietor’s Withdrawals B. Proprietor’s Investment C. Proprietor’s Capital D. Proprietor’s Assets
SLO-3.2. Which of the following is NOT a type of owner's equity? ORent Income OWithdrawls OOwner's Investment OAccounts Payable