1.Collection of a $740 Accounts Receivable
A. decreases a liability $740; increases stockholders’ equity $740.
B. increases an asset $740; decreases an asset $7.40.
C. increases an asset $740; decreases a liability $740.
D. decreases an asset $740; decreases a liability $740.
2. If expenses are paid in cash, then
A. assets will increase
B. assets will decrease.
C. stockholders’ equity will increase
D. liabilities will decrease.
3. An investment by the stockholders in a business increases.
A. liabilities and stockholders’ equity.
B. assets and stockholders’ equity.
C. assets only.
D. assets and liabilities.
4. If a company buys a $660 machine on credit, this transaction will affect the
A. income statement, retained earnings statement, and balance sheet.
B. income statement only.
C. income statement and retained earnings statement only.
D. balance sheet only.
5. During January 2022, its first month of operation, Wildhorse Enterprises earned net income of $8200 and paid dividends to the owners of $2800. At January 31, the balance in Retained Earnings will be
A. $2800.
B. $5400.
C. $8200.
D. $0.
6.During January 2022, Swifty Services Inc. paid a cash dividend of $1600. This transaction
A. reduces net income by $1600.
B. increases expenses by $1600.
C. increases stockholders’ equity by $1600.
D. reduces stockholders’ equity by $1600.
7.During February 2022, its first month of operations, the owner of Sunland Enterprises invested cash of $102000. Sunland had cash sales of $18000 and paid expenses of $36000. Assuming no other transactions impacted the cash account, what is the balance in Cash on February 28?
A. $66000.
B. $120000.
C. $18000.
D. $84000.
8.During 2022, its first year of operations, Blossom’s Bakery had revenues of $142000 and expenses of $67000. The business paid cash dividends of $30000. What is the balance in Retained Earnings at December 31, 2022?
A. $45000.
B. $30000.
C. $0.
D. $75000
9.At December 1, 2022, Bramble Company’s Accounts Receivable balance was $16800. During December, Bramble had credit sales of $44000 and collected accounts receivable of $36700. At December 31, 2022, the Accounts Receivable balance is
A. $24100
B. $7300
C. $60800
D. $16800
10. Which of the following is an asset?
A. Notes Payable
B. Service Revenue
C. Supplies Expense
D. Prepaid Rent