13. On August 1, XYZ Inc. paid $5,000 in advance for September, October, and November rent.What would be the effect on the accounting equation for the transaction?a Increase Equity and decrease equityb.Increase Assets and decrease assetsIncrease Liabilities decrease assetsd. There is no effect on the accounting equation14. Assume Jacob performs a service and gets paid $100 later. Under what accounting method wouldthis transaction fall under?a. Cash Basis of Accountingb.Accrual Basis of AccountingC.Both Cash Basis and Accrual Basis of Accountingd. It would not fall under any accounting method15. Assume Jennifer decides to perform a service and gets paid $70 cash. Under what accountingmethod would this transaction fall under?a.Accrual Basis of Accountingb. Cash Basis of AccountingC.Both Cash Basis of and Accrual Basis of Accountingd. It would not fall under any accounting method

13. On August 1, XYZ Inc. paid $5,000 in advance for September, October, and November rent. What would be the effect on the accounting equation for the transaction? a Increase Equity and decrease equity b. Increase Assets and decrease assets Increase Liabilities decrease assets d. There is no effect on the accounting equation

13. On August 1, XYZ Inc. paid $5,000 in advance for September, October, and November rent. What would be the effect on the accounting equation for the transaction? a Increase Equity and decrease equity b. Increase Assets and decrease assets Increase Liabilities decrease assets d. There is no effect on the accounting equation

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If Oxbow Corporation does not record a sale made on account in December until a month later when the customer pays its invoice, how will Oxbow's December financial statements be impacted? OA. Assets will be understated on the balance sheet, while revenues will be overstated on the income statement. OB. Assets will be understated on the balance sheet, while revenues will be understated on the income statement. OC. Assets will be overstated on the balance sheet, while revenues will be overstated on the income statement. OD. Assets will be overstated on the balance sheet, while revenues will be understated on the income statement.
At 30 June 20X6 a business had a provision for doubtful debts of £37600. At 30 June 20X7 it was decided to write-off £21900 as bad debts and that a specific provision for doubtful debts of £45300 was required. What is the total expense for bad and doubtful debts which will appear in the business's income statement for the year ended 30 June 20X7?
At 30 June 20X6 a business had a provision for doubtful debts of £37600. At 30 June 20X7 it was decided to write-off £21900 as bad debts and that a specific provision for doubtful debts of £45300 was required. What is the total expense for bad and doubtful debts which will appear in the business's income statement for the year ended 30 June 20X7?
IDENTIFY THE EFFECT OF THE FOLLOWING TRANSACTION TO THE RISK OF MATERIAL MISSTATEMENT TO FINANCIAL STATEMENTS. The employees of the company are being paid on a weekly basis. Does it have a: A. INCREASE effect B. DECREASE effect C. NO EFFECT effect
4
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1. From page 5-6 of the VLN, when does a company write off an account? Group of answer choices A. At the end of the year as an adjusting entry. B. At the beginning of the year as an opening entry. C. As soon as the account goes bad. D. At the end of the year as a closing entry. 2. From page 5-7 of the VLN, CCT writes off customer W’s account receivable. Which is true? Group of answer choices A. Cash decreased $1,000. B. Bad debt expense increased $1,000. C. Accounts receivable decreased by $1,000. D. Net Accounts receivable decreased by $1,000.
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