Bundle: College Accounting: A Career Approach, Loose-leaf Version, 13th + Quickbooks Online + Working Papers With Study Guide
13th Edition
ISBN: 9781337800594
Author: Cathy J. Scott
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 4QY
Which of the following statements is true?
- a. Every transaction is recorded as an increase and/or decrease in only one account.
- b. One side of the equation does not need to equal the other side of the equation.
- c. Double-entry accounting is demonstrated by the fact that each transaction must be recorded in at least two accounts.
- d. When a business earns revenue, owner’s equity decreases.
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What is the primary purpose of the Statement of Affairs ?
a. To determine how much is owed by the customers
b. To determine the amount for the owners equity
c. To determine how is left in the bank account
d. To determine if there was a gain or loss on disposal
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a. Adding all the incomes
b. Dividing gross profit by sales
c. Subtracting expenses from sales
d. Multiplying capital by a decimal
The Sandy Bay is a trader in sand. On December 31, 2010 the closing inventory was
completely destroyed by flood rains. The following information is available:
(1) Inventory at December 1, 2010 at cost $31,400
(2) Purchases for December 2010 $55,600
(3) Sales for December 2010 $88,800
(4) Standard mark-up is 25%
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b. $17,760
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d. $25,800…
Which of the following statements is false?
Select one:
a. Revenues are increased by debits
b.Revenues increase owner’s equity.
c. Revenues have normal credit balances.
d. Revenues are a positive factor in the computation of net income.
Chapter 1 Solutions
Bundle: College Accounting: A Career Approach, Loose-leaf Version, 13th + Quickbooks Online + Working Papers With Study Guide
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