Increase Assets (Accounts Receivable) and decrease Liabilities (Accounts Payable) Increase Assets (Cash) and increase Assets (Accounts Receivable) b ANSWER: Moderate DIFFICULTY: Remembering Bloom’s: ACCT.WARD.16.01-04 - 01-04 LEARNING OBJECTIVES: ACCT.ACBSP.APC.06 - Recording Transactions ACCREDITING STANDARDS: ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Gomez Service Company paid its first installment on a note payable in the amount of $2,000. How will this transaction affect the accounting equation? Increase Liabilities (Notes Payable) and decrease Assets (Cash) Decrease Assets (Cash) and decrease Equity (Note Payable Expense) Owner’s Decrease Assets (Cash) and decrease Assets (Notes Receivable) Decrease Assets (Cash) and decrease Liabilities (Notes Payable) d ANSWER: Moderate DIFFICULTY: Remembering Bloom’s: ACCT.WARD.16.01-04 - 01-04 LEARNING OBJECTIVES: ACCT.ACBSP.APC.06 - Recording Transactions ACCREDITING STANDARDS: ACCT.ACBSP.APC.16 - Current Liabilities Reporting ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Ramon Ramos has withdrawn $750 from Ramos Repair cash account to deposit in his Company’s personal account. How does this transaction affect Ramos Repair accounting equation? Company’s Increase Assets (Accounts Receivable) and decrease Assets (Cash) Decrease Assets (Cash) and decrease Equity Owner’s (Owner’s Withdrawal) Decrease Assets (Cash) and decrease Liabilities (Accounts Payable) Increase Assets (Cash) and decrease Equity Owner’s (Owner’s Withdrawal) b ANSWER: Moderate DIFFICULTY: Remembering Bloom’s: ACCT.WARD.16.01-04 - 01-04 LEARNING OBJECTIVES: ACCT.ACBSP.APC.06 - Recording Transactions ACCREDITING STANDARDS: ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Which of the following is not a business transaction? Erin deposits $15,000 in a bank account in the name of Erin’s Lawn Service. Erin provided services to customers earning fees of $600. Erin purchased hedge trimmers for her lawn service agreeing to pay the supplier next month.
Increase Assets (Accounts Receivable) and decrease Liabilities (Accounts Payable) Increase Assets (Cash) and increase Assets (Accounts Receivable) ANSWER: b DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Gomez Service Company paid its first installment on a note payable in the amount of $2,000. How will this transaction affect the accounting equation? Increase Liabilities (Notes Payable) and decrease Assets (Cash) Decrease Assets (Cash) and decrease Owner’s Equity (Note Payable Expense) Decrease Assets (Cash) and decrease Assets (Notes Receivable) Decrease Assets (Cash) and decrease Liabilities (Notes Payable) ANSWER: d DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.ACBSP.APC.16 - Current Liabilities Reporting ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Ramon Ramos has withdrawn $750 from Ramos Repair Company’s cash account to deposit in his personal account. How does this transaction affect Ramos Repair Company’s accounting equation? Increase Assets (Accounts Receivable) and decrease Assets (Cash) Decrease Assets (Cash) and decrease Owner’s Equity (Owner’s Withdrawal) Decrease Assets (Cash) and decrease Liabilities (Accounts Payable) Increase Assets (Cash) and decrease Owner’s Equity (Owner’s Withdrawal) ANSWER: b DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-04 - 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Which of the following is not a business transaction? Erin deposits $15,000 in a bank account in the name of Erin’s Lawn Service. Erin provided services to customers earning fees of $600. Erin purchased hedge trimmers for her lawn service agreeing to pay the supplier next month.
Accouting-26th-Edition-Test-Bank.docx