Find what is effect of transaction on financial statement

Assignment Help Financial Accounting

Reference no: EM132656107

Problem 1: Who will be a user of financial statements, and what will they be used for?

Group of answer choices

Option 1: Managers will use financial statements to make decisions about their company.

Option 2: All of these

Option 3: Lenders will use financial statements to decide whether to lend to a company.

Option 4: Investors will use financial statements to decide whether to invest money into a company.

Option 5: None of these

Problem 2: There are two basic types of accounting methods: cash accounting and accrual accounting.

Group of answer choices

True

False

Problem 3: Stability deals with the relationship between debt and equity.

Group of answer choices

True

False

Problem 4: A firm collects $20,000 cash on a sale that occurred 30 days ago. What is the effect of this transaction on the financial statements?

Group of answer choices

Option 1: Revenues increase and current liabilities increase.

Option 2: Current assets decrease and revenue decreases.

Option 3: None of these.

Option 4: There is no impact to the financial statements.

Option 5: Current assets (cash) increase and current assets (A/R) decrease.

Reference no: EM132656107

Questions Cloud

Describe the psychoanalytic approach to stress : Describe the psychoanalytic approach to stress.

World war and cold war : Identify, from the course text readings on World War I, World War II, and the Cold War,

Explaining the concept of reasonable assurance : Explain in the letter to Nayan the concept of 'professional scepticism' and how it is not the same as assuming that managers are always trying to deceive

Find what is the ultimate objective of financial management : Find What is the ultimate objective of financial management? to maximize shareholder value (ensure that ROA is higher than the cost of financing)

Find what is effect of transaction on financial statement : Find What is the effect of this transaction on the financial statements? A firm collects $20,000 cash on a sale that occurred 30 days ago.

How do the astronauts and the ground crew overcome doubt : How do the astronauts and the ground crew overcome doubt and go about solving problems, setting and achieving goals?

Describe the ceo of nyx make up company : Describe the CEO of NYX make up company. What type of leadership style do you think he/she displays? Do you feel they are effective or not? Why?

Law enforcement organization : Explain if you believe the law enforcement organization is adequate for the area which it serves. Discuss the police department.

Determine appropriate and professional knowledge : Determine appropriate and professional knowledge, skills and behaviours that are required by HR professionals.

User Account

All Pages