Question 1
A company delivered $10,000 of goods to a customer that agreed to pay cash within 30 days. The goods had cost $8,000 to manufacture.
Which of the following items would beincreasedby this sales transaction? (check all that apply)
- Inventory
- Total Assets
- Total Liabilities
- Accounts Receivable
- Revenue
Question 2
A company took delivery of $50,000 of new inventory and agreed to pay cash to the supplier within 30 days.
Which of the following items would beincreasedby this inventory purchase transaction? (check all that apply)
- Total Stockholders’ Equity
- Current Liabilities
- Cash from Operations
- Inventory
- Cost of Goods Sold
Question 3
A company collected $100,000 cash from a customer who both received and was billed for the goods last quarter.
Which of the following items would beincreasedby this cash collection transaction? (check all that apply)
- Cash from Operations
- Revenue
- Accounts Receivable
- Total Assets
- Total Stockholders’ Equity
Question 4
A company collected $10,000 cash from a customer as a deposit for goods that will be shipped next quarter.
Which of the following items would beincreasedby this cash collection transaction? (check all that apply)
- Total Liabilities
- Total Assets
- Accounts Receivable
- Cash from Operations
- Revenue
Question 5
A company received $100,000 cash from issuing 10,000 shares of $4 par value stock.
Which of the following items would beincreasedby this stock issuance transaction? (check all that apply)
- Revenue
- Additional Paid in Capital
- Total Liabilities
- Cash from Operations
- Total Assets
Question 6
A company received $75,000 cash from a bank loan that must be repaid in three years.
Which of the following items would beincreasedby this bank loan transaction? (check all that apply)
- Notes Payable
- Cash from Investing
- Interest Payable
- Revenue
- Current Assets
Question 7
A company declared $500,000 of dividends that will be paid two months from now.
Which of the following items would beincreasedby this dividend declaration transaction? (check all that apply)
- Cash from Financing
- Net Income
- Dividend Expenses
- Retained Earnings
- Total Liabilities
Question 8
A company paid $50,000 to its insurance company for fire insurance coverage over the next year.
Which of the following items would beincreasedby this insurance prepayment transaction? (check all that apply)
- Prepaid Insurance
- Unearned Revenue
- Current Assets
- Total Stockholders’ Equity
- Insurance Expense
Question 9
At the end of the quarter, a company did an adjusting entry to record the fact that $1,000 of Prepaid Advertising had been used up during the quarter.
Which of the following items would beincreasedby this advertising adjusting entry? (check all that apply)
- Prepaid Advertising
- Cost of Goods Sold
- Total Liabilities
- Cash from Operations
- Advertising Expense
Question 10
A company borrowed $500,000 cash from a bank and used it to purchase $500,000 of new manufacturing equipment.
Which of the following items would beincreasedby the bank loan and equipment purchase transactions? (check all that apply)
- Cash from Financing
- Notes Payable
- Total Assets
- Cash from Investing
- Inventory
Question 11
At the end of the quarter, a company did an adjusting entry to record $5,000 of depreciation on the fleet of automobiles used by the sales force.
Which of the following items would beincreasedby this depreciation adjusting entry? (check all that apply)
- Cash from Operations
- Total Assets
- SG&A Expense
- Accumulated Depreciation
- Total Liabilities
Question 12
A company sold a piece of manufacturing equipment for $30,000 cash. The equipment had been listed on the balance sheet at a net book value of $25,000, so the company recorded a gain on sale of equipment of $5,000.
Which of the following items would beincreasedby this equipment sale transaction? (check all that apply)
- Net Income
- Total Assets
- Cash from Operations
- Equipment
- Cash from Investing
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