Deck 1: An Introduction to Accounting

Question 1

Financial accounting standards are known collectively as GAAP.What does that acronym stand for?

A)Generally Accepted Accounting Principles
B)Generally Applied Accounting Procedures
C)Governmentally Approved Accounting Practices
D)Generally Authorized Auditing Principles

Answer 1

Generally Accepted Accounting Principles

Question 2

As of December 31,Year 2,Bristol Company had $100,000 of assets,$40,000 of liabilities and $25,000 of retained earnings.What percentage of Bristol's assets were obtained through investors?

A)60%
B)25%
C)40%
D)35%

Answer 2

35%

Question 3

When a business provides services for cash,which elements of the accounting equation are affected?

A)Revenue and Expense
B)Cash and Revenue
C)Cash and Expense
D)Cash and Dividends

Answer 3

Cash and Revenue

Question 4

A company's total assets increased during the period while its liabilities and common stock were unchanged.No dividends were declared or paid during the period.Which of the following would explain this situation?

A)Revenues were greater than expenses during the period.
B)Retained earnings were less than net income during the period.
C)No dividends were paid during the period.
D)The company must have purchased assets with cash during the period.

Question 5

Hazeltine Company issued common stock for $200,000 cash.What happened as a result of this event?

A)Assets increased.
B)Equity increased.
C)Claims increased.
D)Assets,claims,and equity all increased.

Question 6

Which of the following groups has the primary responsibility for establishing generally accepted accounting principles for business entities in the United States?

A)Securities and Exchange Commission
B)U.S.Congress
C)International Accounting Standards Board
D)Financial Accounting Standards Board

Question 7

Which type of accounting information is intended to satisfy the needs of external users of accounting information?

A)Cost accounting
B)Managerial accounting
C)Tax accounting
D)Financial accounting

Question 8

The Heritage Company is a manufacturer of office furniture.Which term best describes Heritage's role in society?

A)Conversion agent
B)Regulatory agency
C)Consumer
D)Resource owner

Question 9

Stosch Company's balance sheet reported assets of $40,000,liabilities of $15,000 and common stock of $12,000 as of December 31,Year 1.Retained earnings on the December 31,Year 2 balance sheet is $18,000 and Stosch paid a $14,000 dividend during Year 2.What is the amount of net income for Year 2?

A)$17,000
B)$19,000
C)$13,000
D)$21,000

Question 10

On January 1,Year 2,Chavez Company had beginning balances as follows: total assets of $12,500,total liabilities of $4,500,and common stock of $3,000.During Year 2,Chavez paid dividends to its stockholders of $2,000.Given that retained earnings amounted to $6,000 at the end of Year 2,what was Chavez's net income for Year 2?

A)$3,000
B)$5,000
C)$7,000
D)$2,000

Question 11

Algonquin Company reported assets of $50,000,liabilities of $22,000 and common stock of $15,000.Based on this information only,what is the amount of the company's retained earnings?

A)$7,000.
B)$57,000.
C)$13,000.
D)$87,000.

Question 12

Turner Company reported assets of $20,000 (including cash of $9,000),liabilities of $8,000,common stock of $7,000,and retained earnings of $5,000.Based on this information,what can be concluded?

A)25% of Turner's assets are the result of prior earnings.
B)$5,000 is the maximum dividend that can be paid to shareholders.
C)40% of Turner's assets are the result of borrowing from creditors.
D)25% of Turner's assets are from prior earnings,$5,000 is the maximum possible dividend,and 40% of assets are the result of borrowed resources.

Question 13

At the time of liquidation,Fairchild Company reported assets of $200,000,liabilities of $120,000,common stock of $70,000 and retained earnings of $10,000).What is the maximum amount of Fairchild's assets that the shareholders are entitled to receive?

A)$200,000
B)$80,000
C)$90,000
D)$100,000

Question 14

Which resource providers lend financial resources to a business with the expectation of repayment with interest?

A)Consumers
B)Creditors
C)Investors
D)Owners

Question 15

Which of the following statements is false regarding managerial accounting information?

A)It is often used by investors.
B)It is more detailed than financial accounting information.
C)It can include nonfinancial information.
D)It focuses on divisional rather than overall profitability.

Question 16

Which of the following is not an element of the financial statements?

A)Net income
B)Revenue
C)Assets
D)Cash

Question 17

Ballard Company reported assets of $500 and liabilities of $200.What amount will Ballard's report for stockholders' equity?

A)$300
B)$500
C)$700
D)Cannot be determined

Question 18

Which of the following is an example of revenue?

A)Cash received as a result of a bank loan
B)Cash received from investors from the sale of common stock
C)Cash received from customers at the time services were provided
D)Cash received from the sale of land for its original selling price

Question 19

International accounting standards are formulated by the IASB.What does that acronym stand for?

A)Internationally Accepted Standards Board
B)International Accounting Standards Board
C)International Accountability Standards Bureau
D)International Accounting and Sustainability Board

Question 20

Li Company paid cash to purchase land.What happened as a result of this business event?

A)Total assets decreased.
B)Total assets were unaffected.
C)Total equity decreased.
D)Both assets and total equity decreased.

Question 21

Glavine Company repaid a bank loan with cash.How should the cash flow from this event be shown on the horizontal statements model?

A)An operating activity that decreases cash,decreases equity,and decreases net income
B)A financing activity that decreases cash and decreases liabilities
C)A financing activity that decreases cash,decreases equity,and decreases net income
D)An investing activity that decreases cash and decreases liabilities

Question 22

The following information applies to the questions displayed below
The financial statements of Calloway Company prepared at the end of the current year contained the following elements and corresponding amounts: Assets = $50,000; Liabilities = ?; Common Stock = $15,000; Revenue = $22,000; Dividends = $1,500; Beginning Retained Earnings = $3,500; Ending Retained Earnings = $7,500.

-Based on this information,what was the amount of expenses reported on Calloway's income statement for the current year?

A)$18,500
B)$13,000
C)$16,500
D)$10,000

Question 23

Which of the following is not an example of an asset use transaction?

A)Paying cash dividends
B)Paying cash expenses
C)Paying off the principal of a loan
D)Paying cash to purchase land

Question 24

During Year 2,Chico Company earned $1,950 of cash revenue,paid $1,600 of cash expenses,and paid a $150 cash dividend to its owners.Based on this information alone,which of the following statements is not true?

A)Net income amounted to $350.
B)Total assets increased by $200.
C)Cash inflow from operating activities was $350.
D)Cash inflow from operating activities was $200.

Question 25

Yi Company provided services to a customer for $5,500 cash.Based on this information alone,which of the following statements is true?

A)Total assets increased and total equity decreased.
B)Total assets were unchanged.
C)Liabilities decreased and net income increased.
D)Total assets increased and net income increased.

Question 26

Jackson Company had a net increase in cash from operating activities of $10,000 and a net decrease in cash from financing activities of $2,000.If the beginning and ending cash balances for the company were $4,000 and $11,000,what was the net cash change from investing activities?

A)An outflow or decrease of $1,000
B)An inflow or increase of $2,000
C)An inflow or increase of $1,000
D)Zero

Question 27

The financial statements of Calloway Company prepared at the end of the current year contained the following elements and corresponding amounts: Assets = $50,000; Liabilities = ?; Common Stock = $15,000; Revenue = $22,000; Dividends = $1,500; Beginning Retained Earnings = $3,500; Ending Retained Earnings = $7,500.

-What was the amount of total liabilities reported on the balance sheet as of the end of the current year?

A)$27,500
B)$31,500
C)$35,000
D)$42,500

Question 28

Which of the following could describe the effects of an asset exchange transaction on the elements of a company's financial statements?

A)Option A
B)Option B
C)Option C
D)Option D

Question 29

Which of the following financial statements provides information about a company as of a specific point in time?

A)Income statement
B)Balance sheet
C)Statement of cash flows
D)Statement of changes in stockholders' equity

Question 30

Which financial statement matches asset increases from operating a business with asset decreases from operating the business?

A)Balance sheet
B)Statement of changes in equity
C)Income statement
D)Statement of cash flows

Question 31

Chow Company earned $1,500 of cash revenue,paid $1,200 for cash expenses,and paid a $200 cash dividend to its owners.Which of the following statements is true?

A)The net cash inflow from operating activities was $100.
B)The net cash outflow for investing activities was $200.
C)The net cash inflow from operating activities was $300.
D)The net cash outflow for investing activities was $100.

Question 32

Which of the following appears in the investing activities section of the statement of cash flows?

A)Cash inflow from interest revenue
B)Cash inflow from the issuance of common stock
C)Cash outflow for the payment of dividends
D)Cash outflow for the purchase of land

Question 33

Which of the following cash transactions would not affect total assets?

A)Borrowing cash from a bank
B)Issuing common stock for cash
C)Purchasing land for cash
D)Providing services for cash

Question 34

During Year 2,Millstone Company provided $6,500 of services for cash,paid cash dividends of $1,000 to owners,and paid $4,000 cash for expenses.Liabilities were unchanged.Which of the following statements accurately describes the effect of these events on the elements of the company's financial statements?

A)Assets increased by $6,500.
B)Assets increased by $1,500.
C)Equity increased by $2,500.
D)Assets increased by $5,500.

Question 35

Which of the following is a (are)permanent account(s)?

A)The Retained Earnings account
B)All income statement accounts
C)The Dividend account
D)All balance sheet accounts and the Dividends account

Question 36

At the end of Year 2,retained earnings for the Baker Company was $3,500.Revenue earned by the company in Year 2 was $1,500,expenses paid during the period were $800,and dividends paid during the period were $500.Based on this information alone,what was the amount of retained earnings at the beginning of Year 2?

A)$3,300
B)$3,700
C)$2,800
D)$3,800

Question 37

Retained earnings at the beginning and ending of the accounting period were $300 and $800,respectively.Revenues of $1,100 and dividends paid to stockholders of $200 were reported during the period.What was the amount of expenses reported for the period?

A)$500
B)$400
C)$900
D)$700

Question 38

Borrowing cash from the bank is an example of which type of transaction?

A)Asset source
B)Claims exchange
C)Asset use
D)Asset exchange

Question 39

In which section of a statement of cash flows would the payment of cash dividends be reported?

A)Investing activities.
B)Operating activities.
C)Financing activities.
D)Dividends are not reported on the statement of cash flows.

Question 40

Which of the following does not describe the effects of an asset use transaction on the elements of a company's financial statements?

A)Option A
B)Option B
C)Option C
D)Option D

Question 41

The following information applies to the questions displayed below
Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.)

1) Acquired $950 cash from the issue of common stock.
2) Borrowed $420 from a bank.
3) Earned $650 of revenues.
4) Paid expenses of $250.
5) Paid a $50 dividend.

During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.)

1) Issued an additional $325 of common stock.
2) Repaid $220 of its debt to the bank.
3) Earned revenues of $750.
4) Incurred expenses of $360.
5) Paid dividends of $100.


-What is the after-closing amount of retained earnings that will be reported on Packard's balance sheet at the end of Year 2? (Assume that closing entries have been passed).

A)$640
B)$800
C)$290
D)$740

Question 42

The following information applies to the questions displayed below
Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.)

1) Acquired $950 cash from the issue of common stock.
2) Borrowed $420 from a bank.
3) Earned $650 of revenues.
4) Paid expenses of $250.
5) Paid a $50 dividend.

During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.)

1) Issued an additional $325 of common stock.
2) Repaid $220 of its debt to the bank.
3) Earned revenues of $750.
4) Incurred expenses of $360.
5) Paid dividends of $100.


-What is Packard Company's net cash flow from financing activities for Year 2?

A)$220 outflow
B)$320 outflow
C)$5 inflow
D)$225 inflow

Question 43

The following information applies to the questions displayed below.

Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:
1) issued stock for $40,000
2) borrowed $25,000 from its bank
3) provided consulting services for $39,000
4) paid back $15,000 of the bank loan
5) paid rent expense for $9,000
6) purchased equipment costing $12,000
7) paid $3,000 dividends to stockholders
8) paid employees' salaries, $21,000


-What is Yowell's ending notes payable balance?

A)$0
B)$25,000
C)($15,000)
D)$10,000

Question 44

The following information applies to the questions displayed below.

Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:
1) issued stock for $40,000
2) borrowed $25,000 from its bank
3) provided consulting services for $39,000
4) paid back $15,000 of the bank loan
5) paid rent expense for $9,000
6) purchased equipment costing $12,000
7) paid $3,000 dividends to stockholders
8) paid employees' salaries, $21,000


-What is Yowell's net income?

A)$9,000
B)$30,000
C)$18,000
D)$6,000

Question 45

Dividends paid by a company are reported on which of the following financial statement(s)?

A)Income statement
B)Statement of changes in stockholders' equity
C)Statement of cash flows
D)Statement of changes in stockholders' equity and statement of cash flows

Question 46

Expenses are reported on which of the following financial statement(s)?

A)Income statement
B)Balance sheet
C)Statement of changes in stockholders' equity
D)Income statement and statement of changes in stockholders' equity

Question 47

As of December 31,Year 1,Mason Company had $500 cash.During Year 2,Mason earned $1,200 of cash revenue and paid $800 of cash expenses.What is the amount of cash that will be reported on the balance sheet at the end of Year 2?

A)$900
B)$400
C)$1,700
D)$2,500

Question 48

[The following information applies to the questions displayed below.]

Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions)

Acquired $6,000 cash from issuing common stock.
Borrowed $4,400 from a bank.
Earned $6,200 of revenues.
Incurred $4,800 in expenses.
Paid dividends of $800.

Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions)

Acquired an additional $1,000 cash from the issue of common stock.
Repaid $2,600 of its debt to the bank.
Earned revenues, $9,000.
Incurred expenses of $5,500.
Paid dividends of $1,280.


-What was the amount of liabilities on Lexington's balance sheet at the end of Year 2?

A)$1,000.
B)$1,800.
C)($2,600).
D)$480.

Question 49

Which of the following would be reported in the cash flow from financing activities section of a statement of cash flows?

A)Paid cash for dividends
B)Received cash for common stock
C)Sold land for cash
D)Paying cash for dividends and receiving cash from common stock

Question 50

The following information applies to the questions displayed below.

Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:
1) issued stock for $40,000
2) borrowed $25,000 from its bank
3) provided consulting services for $39,000
4) paid back $15,000 of the bank loan
5) paid rent expense for $9,000
6) purchased equipment costing $12,000
7) paid $3,000 dividends to stockholders
8) paid employees' salaries, $21,000


-What is Yowell's net cash flow from operating activities?

A)Inflow of $6,000
B)Inflow of $9,000
C)Inflow of $18,000
D)Inflow of $30,000

Question 51

The following information applies to the questions displayed below
Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.)

1) Acquired $950 cash from the issue of common stock.
2) Borrowed $420 from a bank.
3) Earned $650 of revenues.
4) Paid expenses of $250.
5) Paid a $50 dividend.

During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.)

1) Issued an additional $325 of common stock.
2) Repaid $220 of its debt to the bank.
3) Earned revenues of $750.
4) Incurred expenses of $360.
5) Paid dividends of $100.


-What is the amount of total stockholders' equity that will be reported on Packard's balance sheet at the end of Year 1?

A)$1,350
B)$900
C)$250
D)$1,300

Question 52

Mayberry Company paid $30,000 cash to purchase land.What happened as a result of this business event?

A)Total equity was not affected.
B)The net cash flow from investing activities decreased.
C)Total assets were not affected.
D)Total assets and total equity were not affected,and net cash flow from investing activities decreased.

Question 53

The following information applies to the questions displayed below
Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.)

1) Acquired $950 cash from the issue of common stock.
2) Borrowed $420 from a bank.
3) Earned $650 of revenues.
4) Paid expenses of $250.
5) Paid a $50 dividend.

During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.)

1) Issued an additional $325 of common stock.
2) Repaid $220 of its debt to the bank.
3) Earned revenues of $750.
4) Incurred expenses of $360.
5) Paid dividends of $100.


-What is the amount of assets that will be reported on Packard's balance sheet at the end of Year 2?

A)$2,115
B)$440
C)$2,215
D)$395

Question 54

Santa Fe Company was started on January 1,Year 1,when it acquired $9,000 cash by issuing common stock.During Year 1,the company earned cash revenues of $4,500,paid cash expenses of $3,750,and paid a cash dividend of $250.Which of the following is true based on this information?

A)The December 31,Year 1 balance sheet would show total equity of $8,750.
B)The Year 1 income statement would show net income of $500.
C)The Year 1 statement of cash flows would show net cash inflow from operating activities of $4,500.
D)The Year 1 statement of cash flows would show a net cash inflow from financing activities of $8,750.

Question 55

Robertson Company paid $1,850 cash for rent expense.What happened as a result of this business event?

A)Total equity decreased.
B)Liabilities decreased.
C)The net cash flow from operating activities decreased.
D)Both total equity and net cash flow for operating activities decreased.

Question 56

The following information applies to the questions displayed below
Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.)

1) Acquired $950 cash from the issue of common stock.
2) Borrowed $420 from a bank.
3) Earned $650 of revenues.
4) Paid expenses of $250.
5) Paid a $50 dividend.

During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.)

1) Issued an additional $325 of common stock.
2) Repaid $220 of its debt to the bank.
3) Earned revenues of $750.
4) Incurred expenses of $360.
5) Paid dividends of $100.


-What was the balance of Packard's Retained Earnings account before closing in Year 1?

A)$400
B)$0
C)$350
D)$450

Question 57

[The following information applies to the questions displayed below.]

Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions)

Acquired $6,000 cash from issuing common stock.
Borrowed $4,400 from a bank.
Earned $6,200 of revenues.
Incurred $4,800 in expenses.
Paid dividends of $800.

Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions)

Acquired an additional $1,000 cash from the issue of common stock.
Repaid $2,600 of its debt to the bank.
Earned revenues, $9,000.
Incurred expenses of $5,500.
Paid dividends of $1,280.


-What was the amount of retained earnings that will be reported on Lexington's balance sheet at the end of Year 1?

A)$6,200
B)$5,400
C)$1,400
D)$600

Question 58

The following information applies to the questions displayed below
Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.)

1) Acquired $950 cash from the issue of common stock.
2) Borrowed $420 from a bank.
3) Earned $650 of revenues.
4) Paid expenses of $250.
5) Paid a $50 dividend.

During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.)

1) Issued an additional $325 of common stock.
2) Repaid $220 of its debt to the bank.
3) Earned revenues of $750.
4) Incurred expenses of $360.
5) Paid dividends of $100.


-What is the net cash inflow from operating activities that will be reported on Packard's statement of cash flows for Year 1?

A)$400
B)$650
C)$350
D)$820

Question 59

[The following information applies to the questions displayed below.]

Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions)

Acquired $6,000 cash from issuing common stock.
Borrowed $4,400 from a bank.
Earned $6,200 of revenues.
Incurred $4,800 in expenses.
Paid dividends of $800.

Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions)

Acquired an additional $1,000 cash from the issue of common stock.
Repaid $2,600 of its debt to the bank.
Earned revenues, $9,000.
Incurred expenses of $5,500.
Paid dividends of $1,280.


-What was the net cash flow from financing activities reported on Lexington's statement of cash flows for Year 2?

A)$2,880 outflow
B)$2,880 inflow
C)$1,000 outflow
D)$1,000 inflow

Question 60

[The following information applies to the questions displayed below.]

Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions)

Acquired $6,000 cash from issuing common stock.
Borrowed $4,400 from a bank.
Earned $6,200 of revenues.
Incurred $4,800 in expenses.
Paid dividends of $800.

Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions)

Acquired an additional $1,000 cash from the issue of common stock.
Repaid $2,600 of its debt to the bank.
Earned revenues, $9,000.
Incurred expenses of $5,500.
Paid dividends of $1,280.


-What is the amount of total assets that will be reported on Lexington's balance sheet at the end of Year 1?

A)$11,000
B)$12,000
C)$1,600
D)$7,600

Question 61

Perez Company paid a $300 cash dividend.Which of the following accurately reflects how this event affects the company's financial statements?

A)Option A
B)Option B
C)Option C
D)Option D

Question 62

The stockholders of a business have a priority claim to its assets in the event of liquidation.

Question 63

Which of the following would not describe the effects of an asset source transaction on the elements of a company's financial statements?

A)Option A
B)Option B
C)Option C
D)Option D

Question 64

Jackson Company paid $500 cash for salary expenses.Which of the following accurately reflects how this event affects the company's financial statements?

A)Option A
B)Option B
C)Option C
D)Option D

Question 65

Garrison Company acquired $23,000 by issuing common stock.Which of the following accurately reflects how this event affects the company's financial statements?

A)Option A
B)Option B
C)Option C
D)Option D

Question 66

Liabilities are reported on which of the following financial statement(s)?

A)Income statement
B)Balance sheet
C)Statement of cash flows
D)Statement of changes in stockholders' equity

Question 67

In a market,creditors are resource providers.

Question 68

Delta Company experienced an accounting event that affected its financial statements as indicated below:

Which of the following accounting events could have caused these effects on the elements of Delta's statements?

A)Paid a cash dividend
B)Incurred a cash expense
C)Borrowed money from a bank
D)Earned cash revenue

Question 69

Zimmerman Company sold land for $25,000 cash.The original cost of the land was $25,000.Which of the following accurately reflects how this event affects the company's financial statements?

A)Option A
B)Option B
C)Option C
D)Option D

Question 70

What happened as a result of this transaction?

A)The balance in the Cash account on Northern's books decreased,while the balance in the Cash account on South Company's books increased.
B)South Company has a cash inflow from investing activities.
C)Northern Corporation has a cash outflow from financing activities.
D)All of these statements are true.

Question 71

Which of the following describes the effects of an asset use transaction on the elements of a company's financial statements?

A)Option A
B)Option B
C)Option C
D)Option D

Question 72

Chico Company experienced an accounting event that affected its financial statements as indicated below:

Which of the following accounting events could have caused these effects on the elements of Chico's financial statements?

A)Issued common stock
B)Earned cash revenue
C)Borrowed money from a bank
D)Paid a cash dividend

Question 73

Which of the following could represent the effects of an asset exchange transaction on a company's financial statements?

A)Option A
B)Option B
C)Option C
D)Option D

Question 74

Tandem Company borrowed $32,000 of cash from a local bank.Which of the following accurately reflects how this event affects the company's financial statements?

A)Option A
B)Option B
C)Option C
D)Option D

Question 75

Which of the following could represent the effects of an asset source transaction on a company's financial statements?

A)Option A
B)Option B
C)Option C
D)Option D

Question 76

In a market,a company that manufactures cars would be referred to as a conversion agent.

Question 77

Reynolds Company experienced an accounting event that affected its financial statements as indicated below:

Which of the following accounting events could have caused these effects on the elements of Reynolds' statements?

A)Paid a cash dividend.
B)Earned cash revenue.
C)Borrowed money from a bank.
D)The information provided does not represent a completed event.

Question 78

[The following information applies to the questions displayed below.]

Northern Corporation invested $800 cash in South Company stock.


-Which of the following describes the effects of this transaction on the elements of Northern Corporation's books?

A)Option A
B)Option B
C)Option C
D)Option D

Question 79

Frank Company earned $15,000 of cash revenue.Which of the following accurately reflects how this event affects the company's financial statements?

A)Option A
B)Option B
C)Option C
D)Option D

Question 80

The value created by a business is created by its assets.