Question : 141. Collins Landscape Company purchased various landscaping supplies account to be : 1246490

 

141. Collins Landscape Company purchased various landscaping supplies on account to be used for landscape designs for their customers.  How will this business transaction affect the accounting equation? 
A. Increase Assets (Supplies) and increase Liabilities (Accounts Payable)
B. Increase Assets (Supplies) and decrease Assets (Cash)
C. Increase Assets (Supplies) and decrease Stockholders’ Equity (Supplies Expense)
D. Increase Stockholders’ Equity (Supplies Expense) and increase Liabilities (Accounts Payable)

142. There are four transactions that affect Stockholders’ Equity.  Which are the two transactions that increase Stockholders’ Equity? 
A. Recording revenues and expenses
B. Recording expenses and payment of dividends
C. Recording revenues and the issuance of capital stock
D. Recording the issuance of capital stock and expenses

143. There are four transactions that directly affect Stockholders’ Equity.  Which are the two transactions that decrease Stockholders’ Equity? 
A. Expenses and dividends declared and paid to stockholders
B. Revenues and expenses
C. Revenues and capital stock issued to stockholders
D. Expenses and capital stock issued to stockholders

144. Gomez Service Company has received $7,500 in cash for services rendered.  What affect does this transaction have on the accounting equation? 
A. Increase Assets (Cash) and decrease Stockholders’ Equity (Expenses)
B. Increase Assets (Cash) and decrease Assets (Accounts Receivable)
C. Increase Assets (Accounts Receivable) and increase Stockholders’ Equity (Fees Earned)
D. Increase Assets (Cash) and increase Stockholders’ Equity (Fees Earned)

145. Gomez Service Company paid their first installment on their Notes Payable in the amount of $2,000.  How will this transaction affect the accounting equation? 
A. Increase Liabilities (Notes Payable) and decrease Assets (Cash)
B. Decrease Assets (Cash) and decrease Stockholders’ Equity (Note Payable Expense)
C. Decrease Assets (Cash) and decrease Assets (Notes Receivable)
D. Decrease Assets (Cash) and decrease Liabilities (Notes Payable)

146. Ramierez Company received their first electric bill in the amount of $60 which will be paid next month.  How will this transaction affect the accounting equation? 
A. Increase Liabilities (Accounts Payable) and decrease Stockholders’ Equity (Utilities Expense)
B. Increase Liabilities (Accounts Receivable) and decrease Stockholders’ Equity (Utilities Expense)
C. Decrease Assets (Cash) and decrease Liabilities (Accounts Payable)
D. Decrease Assets (Cash) and decrease Stockholders’ Equity (Utilities Expense)

147. Ramos Repair Company paid $750 in dividends to its stockholders.  How does this transaction affect Ramos Repair Company’s accounting equation? 
A. Increase Assets (Accounts Receivable) and decrease Assets (Cash)
B. Decrease Assets (Cash) and decrease Stockholders’ Equity (Dividends)
C. Decrease Assets (Cash) and decrease Liabilities (Accounts Payable)
D. Increase Assets (Cash) and decrease Stockholders’ Equity (Dividends)

148. Which of the following is not a business transaction? 
A. Erin receives stock in exchange for depositing $15,000 in a bank account in the name of Erin’s Lawn Service.
B. Erin’s Lawn Service provided landscaping services to customers earning fees of $600.
C. Erin’s Lawn Service purchased hedge trimmers and agreed to pay the supplier next month.
D. The major stockholder for Erin’s Lawn Service pays her monthly personal credit card bill.

149. The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or year, is called a(n) 
A. prior period statement
B. statement of cash flows
C. income statement
D. balance sheet

150. All of the following are financial statement(s) of a proprietorship except:  
A. the retained earnings statement
B. the statement of owner’s equity
C. the income statement
D. the statement of cash flows

 

 

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