The accounting equation for Long Company shows an increase in its assets and an increase in its liabilities. Which of the following transactions could have caused that effect?
A. Equipment was purchased on credit.
B. Cash was received from providing services to a customer.
C. Supplies were purchased for cash.
D. Advertising expense for the month was paid in cash.
E. Cash was received as a stockholder investment.
Answer: A
You might also like to view...
Which of the following statements about employee performance appraisals is accurate?
a. Appraisals should be conducted solely for the sake of employee development. b. The specifics of the appraisal should change to fit employees with different tasks. c. Gather information about the employee’s strengths and weaknesses after the appraisal to judge honesty. d. Goal or goal-achievement should generally not be a part of an appraisal process/evaluation.
The journal entry to record the purchase of treasury stock will cause total stockholders' equity to decrease by the amount of the cost of the treasury stock
Indicate whether the statement is true or false
Tu-thumbs buys a used paint sprayer from the local paint store. The sprayer had a large sign on it which said "AS IS." The dealer made no promises or statements concerning the performance of the paint sprayer. When Tu-thumbs attempts to spray paint his house, the trigger on the sprayer sticks in the "on" position and before Tu-thumbs can pull the electrical cord to cut the power, paint is sprayed
all over his prize Borzoi dog that is scheduled to be shown in a dog show the next day. Tu-thumbs sues the dealership. Who wins? a. Dealer wins; there were no express warranties and all implied warranties have been successfully disclaimed. b. Tu-thumbs wins; he can recover on the basis of express warranties. c. Tu-thumbs wins; he can recover on the basis of the implied warranty of merchantability because the word "merchantability" was not used in the disclaimer. d. Dealer wins; even though there were implied warranties, the damage to the dog could not have been foreseen.
When the total supply of the product generated by all sources equals the total demand consumed by all destinations, then transportation constraints can be formulated as equality constraints
a. True b. False