13. The collection of an account receivable will cause total assets to decrease. FALSE Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Demonstrate how certain business transactions affect the elements of the accounting equation: Assets = Liabilities + Owners' Equity. Topic: A Starting Point: Statement of Financial Position 14. The payment of a liability causes an increase in owners' equity. FALSE Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Demonstrate how certain business transactions affect the elements of the accounting equation: Assets = Liabilities + Owners' Equity. Topic: A Starting Point: Statement of Financial Position 15. When a business borrows money from a bank, the immediate effect is an increase in total assets and a decrease in liabilities or owners' equity. FALSE Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Demonstrate how certain business transactions affect the elements of the accounting equation: Assets = Liabilities + Owners' Equity. Topic: A Starting Point: Statement of Financial Position 16. The purchase of an asset, such as office equipment, for cash will cause owners' equity to decrease. FALSE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Demonstrate how certain business transactions affect the elements of the accounting equation: Assets = Liabilities + Owners' Equity. Topic: A Starting Point: Statement of Financial Position
13. The collection of an account receivable will cause total assets to decrease. FALSE Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Demonstrate how certain business transactions affect the elements of the accounting equation: Assets = Liabilities + Owners' Equity. Topic: A Starting Point: Statement of Financial Position 14. The payment of a liability causes an increase in owners' equity. FALSE Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Demonstrate how certain business transactions affect the elements of the accounting equation: Assets = Liabilities + Owners' Equity. Topic: A Starting Point: Statement of Financial Position 15. When a business borrows money from a bank, the immediate effect is an increase in total assets and a decrease in liabilities or owners' equity. FALSE Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Demonstrate how certain business transactions affect the elements of the accounting equation: Assets = Liabilities + Owners' Equity. Topic: A Starting Point: Statement of Financial Position 16. The purchase of an asset, such as office equipment, for cash will cause owners' equity to decrease. FALSE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-03 Demonstrate how certain business transactions affect the elements of the accounting equation: Assets = Liabilities + Owners' Equity. Topic: A Starting Point: Statement of Financial Position
Test-Bank-for-Financial-Accounting-16th-Edition-by-Williams.docx