a. The company pays cash toward an account payable. b. The company purchases equipment on credit. c. The owner invests cash in the business. d. The owner withdraws cash from the business. e. The company purchases supplies for cash. f. The company provides services for cash. 1. Decreases an asset and decreases equity. 4. Increases an asset and decreases an asset. 2. Increases an asset and increases a liability. 5. Increases an asset and increases equity. 3. Decreases an asset and decreases a liability.

a. The company pays cash toward an account payable. b. The company purchases equipment on credit. c. The owner invests cash in the business. d. The owner withdraws cash from the business. e. The company purchases supplies for cash. f. The company provides services for cash. 1. Decreases an asset and decreases equity. 4. Increases an asset and decreases an asset. 2. Increases an asset and increases a liability. 5. Increases an asset and increases equity. 3. Decreases an asset and decreases a liability.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter3: The Double-entry Framework

Section: Chapter Questions

Problem 2SEA: DEBIT AND CREDIT ANALYSIS Complete the following statements using either debit or credit: (a) The...

See similar textbooks

Similar questions

What is the effect on the fundamental accounting equation if supplies are purchased on account? How will the fundamental accounting equation change if supplies are purchased with cash? Explain how this purchase will or will not change the owners equity.
Assume a company has a $350 credit (not cash) sale. How would the transaction appear if the business uses accrual accounting? A. $350 would show up on the balance sheet as a sale. B. $350 would show up on the income statement as a sale. C. $350 would show up on the statement of cash flows as a cash outflow. D. The transaction would not be reported because the cash was not exchanged.
When an owner withdraws cash or goods from the business, why is this considered an increase to the Drawing account and not an increase to the Wages Expense account?
DEBIT AND CREDIT ANALYSIS Complete the following statements using either debit or credit: (a) The cash account is increased with a __________. (b) The owners capital account is increased with a __________. (c) The delivery equipment account is increased with a __________. (d) The cash account is decreased with a __________. (e) The liability account Accounts Payable is increased with a __________. (f) The revenue account Delivery Fees is increased with a __________. (g) The asset account Accounts Receivable is increased with a __________. (h) The rent expense account is increased with a __________. (i) The owners drawing account is increased with a __________.
To purchase an asset such as office equipment on account, you would credit which account? (a) Cash (c) Accounts Payable (b) Accounts Receivable (d) Capital
Which of these transactions would not be part of the cash flows from the operating activities section of the statement of cash flows? A. credit purchase of inventory B. sales of product, for cash C. cash paid for purchase of equipment D. salary payments to employees
When fees are earned and the customer promises to pay later, which account is debited? (a) Cash (b) Accounts Receivable (c) Accounts Payable (d) Capital
A business provides services to a customer on credit.Which of the following is correct: A.Assets increase and onwer's equity increases at the time the cash is collected B.Assets increase and liabilities increase at the time of the sale C.Assets increase and onwer's equity increases at the time of the sale D.Assets increase and liabilities decrease at the time the cash is collected
For each transaction a through f, identify its impact on the accounting equation (select from 1 through 5 below). a. The company pays cash toward an account payable. b. The company purchases equipment on credit. c. The owner invests cash in the business. d. The owner withdraws cash from the business. e. The company purchases supplies for cash. f. The company provides services for cash. 1. Decreases an asset and decreases equity. 2. Increases an asset and increases a liability. 3. Decreases an asset and decreases a liability. 4. Increases an asset and decreases an asset. 5. Increases an asset and increases equity.
A business provider services to a customer on credit.Which of the following is correct: A.Assets increase and liabilities decrease at the time the cash is collected B.Assets increase and liabilities increase at the time of the sale C.Assets increase and the owner's equity increases at the time the cash is collected D.Assets increase and the owner's equity increases at the time of the sale
Identify if it will Increase, Decrease or No effect. 1.What happens to the owner’s assets when the company receives cash from a bank loan? 2.What happens to the owner’s equity when the company receives cash? 3.What happens to the owner’s equity when the owner invests personal cash in the business? 4.What will happen to the company’s liquidity when some of its products are sold from inventory? 5.What happens to the owner’s assets when the company purchases equipment with its cash? 6.What happens to the owner’s assets when the company repays the bank that had lent?
____ 1. The purchase of an asset on account willA) Increase total liabilities and decrease total assets.B) Have no effect on total assets or total liabilities.C) Increase total assets and increase owner’s equity.D) Increase total assets and decrease owner’s equity.____ 2. Amounts owed by a business are referred to asA) AssetsB) EquitiesC) LiabilitiesD) CapitalE) Expenses____ 3. When an owner deposits cash in an account inthe name of the business, it is an increase toA) Cash and Accounts ReceivableB) Cash and WithdrawalsC) Cash and CapitalD) Cash and Accounts PayableE) Cash and Rent Expense____ 4. Which of the following equations is thefundamental accounting equation?A) Assets – Liabilities = Owner’s EquityB) Assets = Liabilities + Owner’s EquityC) Assets + Liabilities = Owner’s EquityD) Assets – Owner’s Equity = LiabilitiesE) Assets + Owner’s Equity = Liabilities____ 5. If an owner invests her computer and printer inthe business, there is an increase toA) Cash and CapitalB) Computer…