College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
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
The term Margin is determined by which of the following operations?
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%
Based on this information, what was the value of the closing inventory?
a. $15,960
b. $17,760
c. $20,400
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
College Accounting (Book Only): A Career Approach
Ch. 1 - Prob. 1QYCh. 1 - Prob. 2QYCh. 1 - Which of the following accounts would increase...Ch. 1 - Which of the following statements is true? a....Ch. 1 - M. Parish purchased supplies on credit. What is...Ch. 1 - Define assets, liabilities, owners equity,...Ch. 1 - Prob. 2DQCh. 1 - How do Accounts Payable and Accounts Receivable...Ch. 1 - Describe two ways to increase owners equity and...Ch. 1 - What is the effect on the fundamental accounting...
Ch. 1 - When an owner withdraws cash or goods from the...Ch. 1 - Define chart of accounts and identify the...Ch. 1 - What account titles would you suggest for the...Ch. 1 - Prob. 1ECh. 1 - Determine the following amounts: a. The amount of...Ch. 1 - Dr. L. M. Patton is an ophthalmologist. As of...Ch. 1 - Describe a business transaction that will do the...Ch. 1 - Describe a transaction that resulted in each of...Ch. 1 - Label each of the following accounts as asset (A),...Ch. 1 - Describe a transaction that resulted in the...Ch. 1 - Describe the transactions that are recorded in the...Ch. 1 - On June 1 of this year, J. Larkin, Optometrist,...Ch. 1 - On July 1 of this year, R. Green established the...Ch. 1 - S. Davis, a graphic artist, opened a studio for...Ch. 1 - On March 1 of this year, B. Gervais established...Ch. 1 - In April, J. Rodriguez established an apartment...Ch. 1 - Prob. 1PBCh. 1 - In March, K. Haas, M.D., established the Haas...Ch. 1 - Prob. 3PBCh. 1 - In March, T. Carter established Carter Delivery...Ch. 1 - In October, A. Nguyen established an apartment...Ch. 1 - Why Does It Matter? MACS CUSTOM CATERING, Eugene,...Ch. 1 - What Would You Say? A friend of yours wants to...Ch. 1 - Prob. 3A
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- Which of the following statements would be consideredtrue regarding debits and credits?a. In any given transaction, the total dollar amount of the debitsand the total dollar amount of the credits must be equal.b. Debits decrease certain accounts and credits decreasecertain accounts.c. Liabilities and stockholders’ equity accounts usually end incredit balances, while assets usually end in debit balances.d. All of the above.arrow_forwardRevenue will be recognized when the following occurs as a result of a business activity with a customer: a) There is an increase in assetsb) There is an increase in liabilities c) There is a decrease in assetsd) none of thesearrow_forwardA company uses the direct write-off method to account for bad debts. What are the effects on the accounting equation of the entry to record the write-off of a customer's account balance? a. Assets increase and Stockholders' equity decrease b. Assets and Stockholders' equity decrease c. Stockholders' equity and liabilities decrease d. Assets and liabilities decreasearrow_forward
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