For each of the following cate ories, state conCisely a transaction that will have the required ef- fect on the elements of the acc ounting u quation.' a. Increase an asset and increase a liability. EXERCISE 2.7 Effects of Business Transactions LO 3 b. Decrease an asset and decrease a liability. c. Increase one asset and decrease another asset. d. Increase an asset and increase owner's eyuit e. Increase one asset, decrease another asset, and increase a liability.

Multiple choice   1. The transaction costs of acquiring an investment measured at amortized cost are A. Included in the initial measurement of the investment and amortized to profit or loss using the effective interest method.  B. Initiallt deferred and recognized in profit or loss only when the aaset is derecognized or becomes impaired.  C. Initially deferred and recognized directly in equity when the asset is derecognized or becomes impaired. D. Expensed immediately on acquisition date.    2. An entity acquired 10 year bonds at a premium. The investment is measured at amortized cost . Seven years after the acquisition, the entity sold 90% of the bonds at a discount. Which is the following is true? A. Gain is realized on the sale. B. The remaining 10% should be reclassified out of the amortized cost measument category.  C. Loss is realized on the sale.  D. B and C   3. There are no payments made during the life of this type of bond; both the principal and interest( computed on a…

Which of the following statements best describes the term "liability"? *a. An excess of equity over current assetsb. Resources to meet financial commitments as they fall duec. The residual interest in the assets of the entity after deducting all of its equityd. A present obligation of the entity arising from past events

Residual interest in the asset of an entity that remains after deducting its liabilities is? a. Liabilities b. Expense c. Owner’s Equity d. Assets

Accumulated depreciation is record on the balance sheet as ___? A. A reduction in corresponding liability B. A reduction to the corresponding asset C. An increase in the corresponding liability D. An increase in the corresponding asset

In an acquisition of assets, the acquirer must give up which of the following? A. Other Assets B. Cash C. Liability D. Any of the given

Which of the following is (are) acceptable valuation(s) for reporting of assets on the balance sheet? 1.   inventories at lower of cost or net realizable value. 2.   accounts receivable at net realizable value. 3.   plant and equipment at cost 4.   investments at acquisition cost   Select one: 1 and 4 1 and 3 1 and 2 2 and 4

Which of the following statements relating to the Accumulated Depreciation account is correct? Select one: O a. The normal balance of the Accumulated Depreciation account is a debit balance. O b. The Accumulated Depreciation account allows the accountant to determine the precise market value of the related asset. O c. The Accumulated Depreciation account is classified as a Liability account. O d. The balance in Accumulated Depreciation account reflects the portion of the historical cost of the asset that has become expense since the item was purchased.

5.-In the inflows and outflows method, the following are considered exceptional inflows: A) Interest earned on investments and sales of non-current assets. B) Sales of non-current assets and sale of merchandise. C) Sale of merchandise and capital contributions. D) Sale of services and interest earned on investments.   (Choose an option)

For the Asset Turnover ratio, which of the following best describes net assets?  multyple choice Fixed Assets + Current assets foxed Asseta +Current assets -Current fabilities Current assets -Current liubitbes Fared assets +Current assets- Cerent lubilities Long term