Wk 4 - Apply: Summative Assessment: The Mechanics of Accounting Questions and Correct Answers.

Burton Company purchased goods for resale. Burton Company paid some cash for the purchase and the remainder was put on the company's credit accounts with its suppliers. What is the effect of this transaction on the accounting equation? Inventory UP, Cash DOWN, Accounts Payable UP Inventory DOWN, Cash DOWN, Accounts Payable DOWN Inventory DOWN, Cash UP, Accounts Payable UP Inventory UP, Cash UP, Accounts Payable DOWN - Answer Inventory UP, Cash DOWN, Accounts Payable UP Dridge Company sold inventory for cash. The selling price was more than the original cost of the inventory. What is the effect of this transaction on the accounting equation? Cash UP, Inventory UP, Retained Earnings UP Cash UP, Inventory DOWN, Retained Earnings DOWN Cash UP, Inventory DOWN, Retained Earnings UP Cash UP, Inventory UP, Retained Earnings DOWN - Answer Cash UP, Inventory DOWN, Retained Earnings UP Lyman Company paid cash for employee wages. What is the effect of this transaction on the accounting equation? Cash UP, Retained Earnings UP Cash UP, Retained Earnings DOWN Cash DOWN, Retained Earnings UP Cash DOWN, Retained Earnings DOWN - Answer Cash DOWN, Retained Earnings DOWN