Bluer Company has a current ratio of 3.00. Which of the following events would cause its current ratio to increase? Select one: a. Collection of an account receivable b. Payment of an account payable c. Purchase of office supplies on account d. Purchase of equipment on account e. None of the above

Bluer Company has a current ratio of 3.00. Which of the following events would cause its current ratio to increase? Select one: a. Collection of an account receivable b. Payment of an account payable c. Purchase of office supplies on account d. Purchase of equipment on account e. None of the above

Name: Bluer Company has a current ratio of 3.00. Which of the following eve
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Description: Bluer Company has a current ratio of 3.00. Which of the following events would cause its current ratio to increase?Select one:a. Collection of an account receivableb. Payment of an account payablec. Purchase of office supplies on accountd. Purchase

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 9PA: Indicate the net effect ( for increase; for decrease; 0 for no effect) of each of the following...

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Bluer Company has a current ratio of 3.00. Which of the following events would cause its current ratio to increase? Select one: a. Collection of an account receivable b. Payment of an account payable c. Purchase of office supplies on account d. Purchase of equipment on account e. None of the above
Choose the correct answer Which of the following accounts is increased by a credit?A. CashB. Accounts receivableC. Accounts payableD. Owner’s drawings At the beginning of the period, the owner’s capital account of a business has a balance of ₱220,000. During the period, the total debits and credits to that account were ₱60,000 and ₱70,000, respectively. How much is the ending balance of the owner’s capital account? A. 230,000B. 210,000C. 350,000D. 90,000
Which of the following accounts decreases with a debit? A) notes payable B) cash C) accounts receivable D) rent expense For expenses, the category of account and its normal balance is ______ A) assets and a debit balance B) equity, and a credit balance C) equity, and a debit balance D) assets, and a credit balance Ranger pool company received cash of $40,000 and issued common stock which of the following accounts will be credited? A) cash B) accounts receivable C) common stock D) accounts payable
On a worksheet, the income statement debit column totals$11,000and the credit column totals$9,500following statements is correct? A. The company had a net loss of$1,500. B. The company's revenues were greater than expenses. C. The company had a net income of$1,500. D. None of the above is correct.
For each of the following accounts, indicate whether we use a debit or a credit to decrease the balance of the account. a. Cash. b. Salaries Payable. c. Utilities Expense. d. Service Revenue.
For each of the transactions below, determine the effect on (a) the current ratio and (b) the acid-test ratio. 1. Provide services to customers on account. 2. Borrow cash from the bank by signing a long-term note payable. 3. Purchase office supplies with cash. 4. Pay rent for the current period.
You are given the following list of accounts with dollar amounts: Rent Expense- $450 Cash-$1,725 Service Revenue- $750 M. Powell, Withdrawals-$375 Accounts Payable-$600 M. Powell, Capital-$1,200 Insert each account name at the top of a corresponding T account as shown in the attached image, and enter the dollar amount as a normal balance in the account. Then show that the accounting equation is in balance.
Bennett Company paid balance due of $3,000 on equipment that had been previously purchased on account. Which two accounts are affected? What kind of accounts are they? Do the account balances increase or decrease? Increase Decrease Increase Decrease Do we debit or credit the accounts? Debit Credit Debit Credit
Castile Inc. had a beginning balance of $2,300 in its Accounts Receivable account. The ending balance of Accounts Receivable was $3,000. During the period, Castile recognized $37,000 of revenue on account. Castile’s Salaries Payable account has a beginning balance of $1,800 and an ending balance of $1,200. During the period, the company recognized $33,800 of accrued salary expense. Required a. Based on the information provided, determine the amount of net income. b. Based on the information provided, determine the amount of net cash flow from operating activities.
At the beginning of the period, a business has accounts payable of ₱200,000. During the period, the total debits and credits to the accounts payable account were ₱100,000 and ₱70,000, respectively. How much is the ending balance of accounts payable?A. 230,000B. 170,000C. 370,000D. 30,000
The Mendholm Company entered into the following transactions: Performed services on account, $21,500. Collected $9,500 from client related to services performed in Item a. Paid $500 dividend to stockholders. Paid salaries of $4,000 for the current month. Required: Show the effect of each transaction using the following model. If an amount box does not require an entry, leave the cells blank or enter zero ("0"). Enter decreases in account values as negative numbers. If the effect of a transaction is to increase AND decrease the same item (i.e. Asset, Liability), enter "0" since the net effect on the item is zero.
What is the normal balance for the following accounts? (Highlight the answer) (For example: Cash Debit Credit) Accounts Receivable Debit Credit Accounts Payable Debit Credit Equipment Debit Credit Service Revenue Debit Credit Prepaid Insurance Debit Credit Expense Debit Credit For each of the transactions in items 2 through 5, indicate the two (or more) effects on the accounting equation of the business or company. (Highlight the answer) Receive payment in cash for outstanding account receivable Assets Increase Decrease No effect Liability Increase Decrease No effect Equity Increase Decrease No effect The company purchases land by paying half in cash and signing a note payable for the other half Assets Increase Decrease No effect…