Question : 51. Which of the following transactions wouldn’t be considered an external : 1228483

51. Which of the following transactions wouldn’t be considered an external exchange? 
A. The purchase of inventory on credit from a supplier.
B. Cash received from a credit customer.
C. Cash paid for wages to employees.
D. Using up insurance which was paid for in advance.

52. Which of the following reflects the impact of a transaction where $200,000 cash was invested by stockholders in exchange for stock? 
A. Assets and liabilities each increased $200,000.
B. Assets and revenues each increased $200,000.
C. Stockholders’ equity and revenues each increased $200,000.
D. Stockholders’ equity and assets each increased $200,000.

53. A corporation purchased factory equipment using cash. Which of the following statements regarding this purchase is false? 
A. The current year’s net income for will be reduced by the cost of the factory equipment.
B. The total assets will not change.
C. The total liabilities will not change.
D. The current stockholders’ equity will not change.

54. Which of the following direct effects on the accounting equation isn’t possible as a result of a single business transaction which impacts only two accounts? 
A. An increase in a liability and a decrease in an asset.
B. An increase in stockholders’ equity and an increase in an asset.
C. An increase in an asset and a decrease in an asset.
D. A decrease in stockholders’ equity and a decrease in an asset.

55. Which of the following direct effects on the accounting equation isn’t possible as a result of a single business transaction? 
A. An increase in an asset and a decrease in another asset.
B. An increase in an asset and an increase in stockholders’ equity.
C. A decrease in stockholders’ equity and an increase in an asset.
D. An increase in a liability and an increase in an asset.

56. A company’s January 1, 2010 balance sheet reported total assets of $150,000 and total liabilities of $60,000. During January 2010, the company completed the following transactions: (A) paid a note payable using $10,000 cash (no interest was paid); (B) collected a $9,000 accounts receivable; (C) paid a $5,000 accounts payable; and (D) purchased a truck for $5,000 cash and by signing a $20,000 note payable from a bank. The company’s January 31, 2010 balance sheet would report which of the following?
   
A. Option A
B. Option B
C. Option C
D. Option D

57. Which of the following happens when equipment is purchased using cash? 
A. Total assets decrease.
B. Current assets don’t change.
C. Current assets increase.
D. Stockholders’ equity doesn’t change.

58. Which of the following describes the impact of purchasing supplies for cash on the balance sheet? 
A. Current assets will decrease.
B. Current assets will increase.
C. Stockholders’ equity will decrease.
D. Total assets remain the same.

59. Which of the following describes the impact of paying a current liability using cash on the balance sheet? 
A. Current assets will decrease.
B. Current liabilities will increase.
C. Stockholders’ equity will decrease.
D. Total assets will remain the same.

60. Which of the following describes the impact on the balance sheet when cash is received from the collection of an account receivable? 
A. Current assets will not change.
B. Current assets will increase.
C. Stockholders’ equity will increase.
D. Total assets will increase.