Accounting Exam 1 (Multiple Choice) with answers graded A+ 2023 100% verified

Transactions affecting stockholders equity include what? - Shares of couple of the capital stock issued to stockholders, dividends declared and paid to stockholders, revenues, and expenses If the two totals of the trial balances are not equal it can be due to what? - An error in determining the account balances, such as a balance being incorrectly computed The type of business that is most likely to obtain large amounts of resources by issuing stock - A corporation Earning revenue - Increases assets, increases stockholders equity Proof that the dollar amount of the debit equal the dollar amount of the credit in a ledger means what? - That only the Debit dollar amount equal the credit dollar amounts And account is said to have a debit balance if... - The amount of debits exceed the amount of credits The balance of the account is determined by what? - Adding all the debits, edit all the credit, and then subtracting the smaller some from the larger some Which of the following will increase stockholders equity - Revenue greater then expenses What group of accounts increase with a credit - Liabilities, capital stock, revenues Which of the following areas, which considered individually, would cause the trial balance totals to the unequal - A payment of 1311 to a creditor was posted as a debit of 3,111 two accounts payable and a debit of 311 to accounts receivable The statement of which cash flows is separatly into three major section as they follow - Operating, investing, and financing Earning revenue - Increases assets, increases stockholders equity Liabilities are reported on what - Balance sheet Debit balance in which the following accounts would indicate a likely error - Notes payable Roof that the dollar amount and the debits equal the dollar amount in the credits in the ledger means - Only that the debit dollar amount equal to credit dollar amounts The assets created by a business when it makes on the sale on account is termed what - Accounts receivable Which of the following financial statements reports information as a specific date - Balance sheet Debit side of an account - Is the left side Which of the following implications of the rules of debits and credits is true - Kincrease supplies expense with a debit in a normal balance is the debit When a transposition error is made on the trial balance, the difference between the debit and credit totals on the trial balance will be what? - Divisible by nine Plies purchased on account were incorrectly recorded as office equipment the correct entry would be what? - Supplies debit, office equipment credit And account is said to have a debit balance if - The amount of debits exceed the amount of credits Assets are what? - Financed by the owner is and or creditors Total liabilities decreased by $25,000 during a period of time and stockholders equity increased by $30,000 during the same period, the amount and direction of the periods change in total assets; increase or decrease? - $5000 increase A business paid $9000 to a creditor and payment of an amount owed. The effect of the transaction on the accounting equation was to what? - Decrease and asset, decrease a liability The payment of dividends increase or decrease what? - Decrease stockholder equity How does the purchase of equipment by signing a note effect the accounting equation - And since increase, liabilities increase