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Acct 5312 McGraw Ch4 Questions with Correct
Answers | Updated (100% Correct Answers)
1. An expanded version of the accounting equation could be:
A. Assets + Revenues = Liabilities + Stockholders' Equity - Expenses
B. Assets - Liabilities = Paid-in Capital - Revenues - Expenses
C. Assets = Liabilities + Paid-in Capital + Beginning Retained Earnings +
Revenues - Expenses - Dividends
D. Assets = Liabilities + Paid-in Capital - Revenues + Expenses Answer: C. Assets
= Liabilities + Paid-in Capital + Beginning Retained Earnings + Revenues -
Expenses - Dividends
2. In the seller's records, the sale of merchandise on account would:
A. increase assets and increase expenses.
B. increase assets and decrease liabilities.
C. increase assets and increase paid-in capital.
D. increase assets and decrease revenues. Answer: increase assets and increase
expenses.
3. In an advertiser's records, a newspaper ad submitted and published this week
with the agreement to pay for it next week would:
A. decrease assets and decrease expenses.
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B. increase liabilities and increase expenses.
C. decrease assets and increase revenue.
D. increase assets and decrease liabilities. Answer: increase liabilities and
increase expenses.
4. In the buyer's records, the purchase of merchandise on account would:
A. increase assets and increase expenses.
B. increase assets and increase liabilities.
C. increase liabilities and increase paid-in capital.
D. have no effect on total assets. Answer: increase assets and increase liabilities.
5. A newspaper ad submitted and published this week, with the agreement to get
paid for it next week would, in the newspaper's records:
A. increase assets and increase revenues.
B. increase assets and decrease liabilities.
C. increase assets and increase expenses.
D. have no effect on total assets. Answer: increase assets and increase revenues.
6. A debit entry will:
A. decrease an asset account.
B. increase a liability account.
© 2026 All rights reserved
Acct 5312 McGraw Ch4 Questions with Correct
Answers | Updated (100% Correct Answers)
1. An expanded version of the accounting equation could be:
A. Assets + Revenues = Liabilities + Stockholders' Equity - Expenses
B. Assets - Liabilities = Paid-in Capital - Revenues - Expenses
C. Assets = Liabilities + Paid-in Capital + Beginning Retained Earnings +
Revenues - Expenses - Dividends
D. Assets = Liabilities + Paid-in Capital - Revenues + Expenses Answer: C. Assets
= Liabilities + Paid-in Capital + Beginning Retained Earnings + Revenues -
Expenses - Dividends
2. In the seller's records, the sale of merchandise on account would:
A. increase assets and increase expenses.
B. increase assets and decrease liabilities.
C. increase assets and increase paid-in capital.
D. increase assets and decrease revenues. Answer: increase assets and increase
expenses.
3. In an advertiser's records, a newspaper ad submitted and published this week
with the agreement to pay for it next week would:
A. decrease assets and decrease expenses.
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, 2
B. increase liabilities and increase expenses.
C. decrease assets and increase revenue.
D. increase assets and decrease liabilities. Answer: increase liabilities and
increase expenses.
4. In the buyer's records, the purchase of merchandise on account would:
A. increase assets and increase expenses.
B. increase assets and increase liabilities.
C. increase liabilities and increase paid-in capital.
D. have no effect on total assets. Answer: increase assets and increase liabilities.
5. A newspaper ad submitted and published this week, with the agreement to get
paid for it next week would, in the newspaper's records:
A. increase assets and increase revenues.
B. increase assets and decrease liabilities.
C. increase assets and increase expenses.
D. have no effect on total assets. Answer: increase assets and increase revenues.
6. A debit entry will:
A. decrease an asset account.
B. increase a liability account.
© 2026 All rights reserved
