How will the following accounts be impacted

Assignment Help Financial Accounting
Reference no: EM1313973

Multiple Choice Questions based on business accounts.

1. BR, Incorporated, a corporation, pays $4,000 in dividends. This $4,000 payment will:

a.Increase the Cash account.

b.Increase the Dividends account.

c.Increase the Capital Stock account.

d.Decrease the Capital Stock account.

2. BR, Incorporated, a corporation, pays $4,000 in dividends. This $4,000 payment will be recorded as a:

a.Dividends: Credit; Cash: Debit

b.Dividends: Debit; Cash: Credit

c.Dividends: No effect; Cash: No effect

d.Dividends: Debit; Cash: No effect

3. BR, Incorporated, a corporation, has a $100,000 Capital Stock balance at the beginning of the year. Additional Common Stock of $45,000 was issued during the year. The Capital Stock balance at the end of the year is:

a.$ 145,000

b.$ 100,000

c.$ 55,000

d.$ 45,000

4. BR, Incorporated issued $100,000 in Capital Stock to each of its two shareholders. The Corporation paid Dividends of $20,000 during the year. The balance in the Capital Stock account at the end of the year is:

a.$ 220,000

b.$ 200,000

c.$ 120,000

d.$ 100,000

5. Carriage Company, Inc.'s Capital Stock balance was $38,000 on December 31, 2001. Additional stock of $13,000 was issued during the year. Carriage's Capital Stock balance on January 1, 2001 was:

a.$51,000

b,$38,000

c.$25,000

d.$13,000

6. StarCo, a newly formed corporation, paid its office rental for the month of April, 2001. What accounts are impacted by this transaction?

a.Debit Dividends; credit Capital Stock

b.Debit Rent Revenue; credit Cash

c.Debit Drawings; credit Capital Stock

d.Debit Rent Expense; credit Cash

7. StarCo, a newly formed corporation, purchased Inventory on account from a vendor. What accounts are impacted by this transaction?

a.Debit Inventory; credit Cash

b.Debit Inventory; credit Accounts Payable

c.Debit Drawings; credit Cash

d.Debit Drawings; credit Accounts Payable

8. The corporation, Joe's Discount Furniture, recorded sales for the month of May, 2001 amounting to $200,000. Sixty percent(60%) of these sales were on account. As a result of this transaction, Joe's Accounts Receivable account will increase by:

a.$ -0-

b.$ 80,000

c.$120,000

d.$200,000

9. The corporation, Joe's Discount Furniture, recorded sales for the month of May, 2001 amounting to $200,000. Sixty percent(60%) of these sales were on account. As a result of this transaction, Joe's Revenue account will increase by:

a.$ -0-

b.$ 80,000

c.$120,000

d.$200,000

10. The corporation, Joe's Discount Furniture, recorded sales for the month of May, 2001 amounting to $200,000. Sixty percent(60%) of these sales were on account. As a result of this transaction, how will the following accounts be impacted?

a.Cash: $ -0-; Capital Stock: $200,000 increase

b.Cash: $ 80,000 increase; Capital Stock: No effect

c.Cash: $120,000 increase; Capital Stock: No effect

d.Cash: $200,000 increase; Capital Stock: $200,000 increase

Reference no: EM1313973

Questions Cloud

Determining expected dividend per share : Dividend is expected to grow 7% a year for next 3 years and then at 5% a year after that. Determine the expected dividend per share for each of the next five years?
Select a usa from the index also bring in additional source : Select a USA from the Index also bring in additional source material to Explicate its ranking also Explain how it has changed over the last 5-10 years.
Gdp forecast and inflation : If I told you that GDP was forecast to rise by a bit more than 3% over the next year, what would that mean to you?  What should you be asking about the forecast?
Calculate the present value for the data furnished : Calculate the present value for the data furnished and a security that will begin making payments when you retire in 20 of $20,000
How will the following accounts be impacted : The corporation, Joe's Discount Furniture, recorded sales for the month of May, 2001 amounting to $200,000. Sixty percent(60%) of these sales were on account. As a result of this transaction, how will the following accounts be impacted?
Finding minimum sample size using the mean scores : What is the minimum sample size needed in order for you to be 95% confident that your estimate is within 5 of µ? Use the value 20 for the population standard deviation of scores on this subsection.
Fluctuations in the economys real growth rate : If the fluctuations in the economy's real growth rate from year to year are caused primarily by variations in the rate at which aggregate delivery increases
Tax impact on labour supply curve and short run : Describe (in a sentence or two) the short run profit maximization condition when labour is the only variable input? What will happen to the labour demand if price of the output goes up?
Distinct entity from the owners : Which organizational form allows the business to be a separate, distinct entity from the owners

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd