ACTG 244 QUESTIONS WITH VERIFIED ANSWERS
Li Company paid cash to purchase Land. As a result of this accounting event: - Answers
- total assets were unaffected
Glavine Company repaid a bank loan with cash. The cash flow from this event should
be shown on the horizontal statements model as: - Answers - a financing activity that
decreases cash and decreases liabilities
An asset source transaction increases total assets and increases claims to assets. T/F -
Answers - True
The issuance of stock to owners for cash would be an example of an asset exchange
transaction. T/F - Answers - False
Purchasing equipment for cash is an example of an asset use transaction. T/F -
Answers - False
Paying a dividend to stockholders in an example of an asset use transaction. T/F -
Answers - True
Making a payment on a bank loan is an example of an asset exchange transaction -
Answers - False
The historical coast concept requires that most assets be recorded at the amount paid
for them, regardless of increases in market value. T/F - Answers - True
The four financial statements prepared by a business bear no relationship to each other.
T/F - Answers - False
Which of the following is false regarding managerial accounting information? - Answers
- It is often used by investors
If a company's total assets increased while liabilities and common stock were
unchanged, then: - Answers - revenues were greater than expenses
Which of the following items is an example of revenue? - Answers - Cash received from
customers at the time services were provided
Li Company paid cash to purchase Land. As a result of this accounting event: - Answers
- total assets were unaffected
Glavine Company repaid a bank loan with cash. The cash flow from this event should
be shown on the horizontal statements model as: - Answers - a financing activity that
decreases cash and decreases liabilities
An asset source transaction increases total assets and increases claims to assets. T/F -
Answers - True
The issuance of stock to owners for cash would be an example of an asset exchange
transaction. T/F - Answers - False
Purchasing equipment for cash is an example of an asset use transaction. T/F -
Answers - False
Paying a dividend to stockholders in an example of an asset use transaction. T/F -
Answers - True
Making a payment on a bank loan is an example of an asset exchange transaction -
Answers - False
The historical coast concept requires that most assets be recorded at the amount paid
for them, regardless of increases in market value. T/F - Answers - True
The four financial statements prepared by a business bear no relationship to each other.
T/F - Answers - False
Which of the following is false regarding managerial accounting information? - Answers
- It is often used by investors
If a company's total assets increased while liabilities and common stock were
unchanged, then: - Answers - revenues were greater than expenses
Which of the following items is an example of revenue? - Answers - Cash received from
customers at the time services were provided
