If a company uses $1,350 of its cash to purchase supplies, the effect on the accounting equation would be:Multiple ChoiceAssets increase $1,350 and liabilities decrease $1,350.One asset increases $1,350 and another asset decreases $1,350, causing no effect.Assets decrease $1,350 and equity decreases $1,350. Assets increase $1,350 and liabilities decrease $1,350.One asset increases $1,350 and another asset decreases $1,350, causing no effect.Assets decrease $1,350 and equity decreases $1,350.Assets decrease $1,350 and equity increases $1,350.Assets increase $1,350 and liabilities increase $1,350.

Name: If a company uses $1,350 of its cash to purchase supplies, the effect
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: If a company uses $1,350 of its cash to purchase supplies, the effect on the accounting equation would be:Multiple ChoiceAssets increase $1,350 and liabilities decrease $1,350.One asset increases $1,350 and another asset decreases $1,350, causing no

Date Accounts Debit Credit Supplies $1,350 Cash $1,350

Business

Accounting

If a company uses $1,350 of its cash to purchase supplies, the effect on the accounting equation would be: Multiple Choice Assets increase $1,350 and liabilities decrease $1,350. One asset increases $1,350 and another asset decreases $1,350, causing no effect. Assets decrease $1,350 and equity decreases $1,350.

If a company uses $1,350 of its cash to purchase supplies, the effect on the accounting equation would be: Multiple Choice Assets increase $1,350 and liabilities decrease $1,350. One asset increases $1,350 and another asset decreases $1,350, causing no effect. Assets decrease $1,350 and equity decreases $1,350.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 2SEQ: The receipt of $8,000 cash for fees earned was recorded by Langley Consulting as an increase in cash...

See similar textbooks

Similar questions

Jarem Company showed 189,000 in prepaid rent on December 31, 20X1. On December 31, 20X2, the balance in the prepaid rent account was 226,800. Rent expense for 20X2 was 472,500. Required: 1. What amount of cash was paid for rent in 20X2? 2. CONCEPTUAL CONNECTION What adjustment in prepaid expenses is needed if the indirect method is used to prepare Jarems statement of cash flows?
If beginning cash equaled $10,000 and ending cash equals $19,000, which is true? A. Operating cash flow 9,000; Investing cash flow (3,500); Financing cash flow (2,500) B. Operating cash flow 4,500; Investing cash flow 9,000; Financing cash flow (4,500) C. Operating cash flow 2,000; Investing cash flow (13,000); Financing cash flow 2,000 D. none of the above
If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity? A. B. C. D. Group of answer choices Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change. There would be no effect on the accounts because the accounts are affected by the same amount. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000.
Starry Company purchased equipment by borrowing money from a bank for $50,000. Which of the following would reflect this transaction? a. It would decrease liabilities by $50,000 b. It would decrease retained earnings by $50,000 c. It would increase assets by $50,000 d. It would decrease cash by $50,000
Which of the following statements is TRUE? If a company provides service and bills its client $20,000, the journal entry to record this transaction will cause Total Assets to increase. If a company collects a cash deposit of $20,000 for services not yet performed, the journal entry to record this transaction will cause Net Income to increase. If a company pays $20,000 for inventory previously purchased on account, the journal entry to record this payment will cause Total Liabilities to increase. None of the above.
When a company buys equipment for $161,000 and pays for one half in cash and the other one half is financed by a note payable, which of the following are the effects on the accounting equation? a. Total assets increase $161,000 b. Total liabilities increase $161,000 c. Total liabilities decrease $80,500 d. Total assets increase $80,500
Suppose your company sells goods for $450, of which $275 is received in cash and $175 is on account. The goods cost your company $155 and were paid for in a previous period. Your company also recorded salaries and wages of $145, of which only $45 has been paid in cash. How would i answer the following questions?? Calculate the amount that should be reported as net cash flow from operating activities. Calculate the amount that should be reported as net income. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2).
Zion Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation? Group of answer choices Assets decrease by $75,000 and expenses decrease by $75,000. Liabilities increase by $75,000 and expenses decrease by $75,000. Assets increase by $75,000 and expenses decrease by $75,000. Assets increase by $75,000 and liabilities increase by $75,000.
Suppose your company sells goods for $300, of which $200 is received in cash and $100 is on account. The goods cost your company $125 and were paid for in a previous period. Your company also recorded salaries and wages of $70, of which only $30 has been paid in cash. Calculate the amount that should be reported as net cash flow from operating activities. Calculate the amount that should be reported as net income. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2).
Directions: Read and analyze the problem below then do the following requirements. Assuming, you owned a sari-sari store and had a beginning cash amounting of P50, 000 and the following transactions occurred during the month. Purchase of goods. Paid in cash. 100, 000 Sales of goods. Received cash. 150,000 Paid utilities 30,000 Paid rent 10,000 Sold equipment for cash 100, 000 Owner withdraws investment 10, 000 Required: Compute for your net cash flow generated/used in operating activities. Compute for your net cash flow generated/used in investing activities. Compute for your net cash flow used in financing activities. Prepare a cash flows statement using direct method.
Only one of the following statements correctly describes the effect of a transaction on the financial statements. Which one? A. The purchase of a motor van for £10,000 cash will increase the assets (motor van) by £10,000 and decrease equity by £10,000 B. A debtor who pays an amount owed £1,000 will result in an increase in sales by £1,000 and an increase in cash by £1,000 C. Goods purchased on credit £2,000 will increase inventories by £2,000 and increase trade payables by £2,000 D. The payment of a trade payable by £3,000 will decrease the claims (payables) by £3,000 and decrease equity by £3,000
The receipt of $8,000 cash for fees earned was recorded by Mother Earth Consulting as an increase in cash of $8,000 and a decrease in retained earnings (revenue) of $8,000. What is the effect of this error on the accounting equation? A. Total assets will exceed total liabilities and stockholders’ equity by $8,000 B. Total assets will be less than total liabilities and stockholders’ equity by $8,000 C. Total assets will exceed total liabilities and stockholders’ equity by $16,000 D. The error will not affect the accounting equation.