A company provides services on account. Indicate how this transactionwould affect (1) assets, (2) stockholders' equity, and (3) revenues.A. (1) Increase, (2) Increase, (3) Increase.B. (1) No effect, (2) Increase, (3) Increase.C. (1) No effect, (2) No effect, (3) No effect.D. (1) Increase, (2) No effect, (3) Increase.

The correct answer is:A. (1) Increase, (2) Increase, (3) Increase. Explanation:When a company…

Answered: A company provides services on account.…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 1PB: Identify whether each of the following accounts would be considered a permanent account (yes/no) and...

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Which of the following accounts is increased by a debit? A. Common Stock B. Accounts Payable C. Supplies D. Service Revenue
Subject: acounting
A. Identify the nature of each account using the letter A for assets, L for liabilities, SE for shareholders’ equity, R for revenue, E for expenses, and NA for not applicable. B. Calculate net income for the period. C. How much has been earned by the company’s operations but not distributed to shareholders? D. What is the total investment by shareholders? E. How much do customers owe the company?
Explain whether each of the following balance sheet items increases, reduces, or has no directeffect on a company’s ability to pay its obligations as they come due. Explain your reasoning.a. Cash.b. Accounts Payable.c. Accounts Receivable.d. Capital Stock.
ndicate whether the following items would appear on the income statement, balance sheet, or retained earnings statement. a. Service Revenue select a financial statement b. Utilities Expense select a financial statement c. Cash select a financial statement d. Accounts Payable select a financial statement e. Supplies select a financial statement f. Salaries Expense select a financial statement g. Accounts Receivable select a financial statement h. Retained Earnings (ending) select a financial statement…
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Identify how each of the following transactions affects the company's financial statements. For the balance sheet, Identify how each transaction affects total assets, total llabilities, and equity. For the Income statement, Identify how each transaction affects profit. If there is an Increase, select a *+" In the column or columns. If there is a decrease, select a "-" In the column or columns. If there is both an Increase and a decrease, select a *+/-" In the column or columns. The Iline for the first transaction Is completed as an example. Income Statement Balance Sheet Total Total Transaction Equity Profit Assets Liabilities 1 Owner invests cash 2 Seli services for cash 3 Acquire services on credit 4 Pay wages with cash 5 Owner withdraws cash 6 Borrow cash with note payable 7 Sell services on credit 8 Buy office equipment for cash 9 Collect receivable from (7) 10 Buy asset with note payable
Which one of the following states that the life of a business can be divided into equal time periods? a. Revenue recognition principle. b. Accounting period assumption. c. Accrual concept. d. Economic entity concept.
Which of the following groups of accounts increase with a credit? Oa. assets, common stock, revenues Ob. common stock, revenues, expenses Oc. liabilities, common stock, revenues
1) A company provides services on account. Indicate how this transaction would affect (1) assets, (2) stockholders' equity, and (3) revenues. A) (1) Increase, (2) Increase (3) Increase B) (1) No effect, (2) Increase (3) Increase C) (1) Increase, (2) No effect (3) Increase D) (1) No effect, (2) No effect (3) No effect 2) Cash may not include: A) Money orders B) Undeposited customer checks. C) Accounts receivable. D) Foreign currency.
Multiple choice: 1. Earning revenue on account: A. decrease assets B. increases liabilities C. decreases owner's equity D. increase owner’s equity 2. The amount owed by an entity when it makes a purchase on account is termed a(n): A. accounts receivable B. accounts payable C. note receivable D. note payable
"Identify each of the following accounts of Kaiser Services Co. as asset, liability, stockholders’ equity, revenue, or expense, and state in each case whether the normal balance is a debit or a credit:A.Accounts PayableB.Accounts ReceivableC.CashD.Common StockE.DividendsF.Fees EarnedG.Office EquipmentH.Rent ExpenseI.SuppliesJ.Wages Expense

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