ACG CH.3 EXAM UPDATED QUESTIONS
AND CORRECT ANSWERS.
Issued common stock to investors in exchange for cash received from investors. -
ANS INCREASE In Cash and INCREASE in Common Stock
Paid monthly rent. - ANS DECREASE in Cash and DECREASE in Rent Expenses
Received cash from customers when service was performed. - ANS INCREASE In Cash and
INCREASE in Service Revenues
Billed customers for services performed. - ANS INCREASE In Accounts Receivable and
INCREASE in Service Revenue
Paid dividend to stockholders. - ANS DECREASE in Cash and DECREASE in Dividends
Incurred advertising expense on account. - ANS INCREASE in Accounts Payable and
DECREASE in Advertising Expenses
Received cash from customers billed in (4).
(4.Billed customers for services performed.) - ANS INCREASE in Cash and DECREASE in
Accounts Receivable
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Purchased additional equipment for cash. - ANS INCREASE in Equipment and DECREASE in
Cash
Purchased equipment on account. - ANS INCREASE in Equipment and INCREASE in Accounts
Payable
Stockholders invested $40,000 in the business in exchange for common stock of the company -
ANS INCREASE Cash 40,000 and INCREASE Common Stock 40,000
Purchased computers for office use for $30,000 from Dell on account. - ANS INCREASE
Equipment 30,000 and INCREASE Accounts Payable 30,000
Paid $4,000 cash for May rent on storage space. - ANS DECREASE Cash (4,000) and DECREASE
Expenses (4,000)
Performed computer services worth $19,000 on account. - ANS INCREASE Accounts
Receivable 19,000 and INCREASE Revenues 19,000
Performed computer services to Lawton Construction Company for $5,000 cash. -
ANS INCREASE Cash 5,000 and INCREASE Revenues 5,000
Paid Southern States Power Co. $8,000 cash for energy usage in May. - ANS DOWN Cash
(8,000) and DECREASE Expenses (8,000)
Paid Dell for the computers purchased in (2).
(Purchased computers for office use for $30,000 from Dell on account.) - ANS DOWN Cash
(30,000) and DECREASE Accounts Payable (30,000)
Incurred advertising expense for May of $1,300 on account. - ANS INCREASE Accounts
Payable 1,300 and DECREASE Expenses 1,300
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
AND CORRECT ANSWERS.
Issued common stock to investors in exchange for cash received from investors. -
ANS INCREASE In Cash and INCREASE in Common Stock
Paid monthly rent. - ANS DECREASE in Cash and DECREASE in Rent Expenses
Received cash from customers when service was performed. - ANS INCREASE In Cash and
INCREASE in Service Revenues
Billed customers for services performed. - ANS INCREASE In Accounts Receivable and
INCREASE in Service Revenue
Paid dividend to stockholders. - ANS DECREASE in Cash and DECREASE in Dividends
Incurred advertising expense on account. - ANS INCREASE in Accounts Payable and
DECREASE in Advertising Expenses
Received cash from customers billed in (4).
(4.Billed customers for services performed.) - ANS INCREASE in Cash and DECREASE in
Accounts Receivable
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Purchased additional equipment for cash. - ANS INCREASE in Equipment and DECREASE in
Cash
Purchased equipment on account. - ANS INCREASE in Equipment and INCREASE in Accounts
Payable
Stockholders invested $40,000 in the business in exchange for common stock of the company -
ANS INCREASE Cash 40,000 and INCREASE Common Stock 40,000
Purchased computers for office use for $30,000 from Dell on account. - ANS INCREASE
Equipment 30,000 and INCREASE Accounts Payable 30,000
Paid $4,000 cash for May rent on storage space. - ANS DECREASE Cash (4,000) and DECREASE
Expenses (4,000)
Performed computer services worth $19,000 on account. - ANS INCREASE Accounts
Receivable 19,000 and INCREASE Revenues 19,000
Performed computer services to Lawton Construction Company for $5,000 cash. -
ANS INCREASE Cash 5,000 and INCREASE Revenues 5,000
Paid Southern States Power Co. $8,000 cash for energy usage in May. - ANS DOWN Cash
(8,000) and DECREASE Expenses (8,000)
Paid Dell for the computers purchased in (2).
(Purchased computers for office use for $30,000 from Dell on account.) - ANS DOWN Cash
(30,000) and DECREASE Accounts Payable (30,000)
Incurred advertising expense for May of $1,300 on account. - ANS INCREASE Accounts
Payable 1,300 and DECREASE Expenses 1,300
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
