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20 terms

Chapter 2 - Accounting

STUDY
PLAY
An investment of cash into the business will
Increase stockholders equity
Purchasing a computer on account will
Increase total assets, total liabilities, and have no effect on stockholders' equity. (All of the above)
Performing service on account will
Increase total assets and stockholders equity (Both a and b)
Receiving cash from a customer on account will
have no effect on total assets
Purchasing a computer equipment for cash will
have no effect on total assets, total liabilities, or stockholders equity
Purchasing a building for $100,000
Increase both total assets and total liabilities by $80,000
What is the effect on total assets and stockholders equity of paying the electric bill as soon as it is received each month
Decrease on total assets and stockholders equity
Which of the following transactions will increase an asset and liability
Buying equipment on account
Will increase an asset and increase stockholders equity
performing a service on account for a customer
Where do we first record a transaction
Journal
Which of the following is not an asset account
None of the above is an asset
Which statement is false
Dividends are increased by credits
The journal entry to record the receipt of land and a building and issuance of common stock
Debits land and building and credit common stock
The journal entry to record the purchase of supplies on account
Debits supplies and credits accounts payable
If the credit to record the purchase of supplies on account is not posted
Liabilities will be understated
The journal entry to record a payment on account will
Debits accounts payable and credit cash
If the credit to record the payment of an account payable is not posted
cash will be overstated
Which statement is false
A trial balance is the same as a balance sheet
A business's purchase of a $100,000 building with an $85,000 mortgage
Increase stockholders equity by $15,000
Martex, inc. , a new company
$87,000