30. When accounts payable decreases for a given period, what happens to cash flo

Question

30. When accounts payable decreases for a given period, what happens to cash flow on that statement? a. Increases . Decreases no effect. it is a noncash transaction. 31. Purchasing land by issuing bonds has what effect on cash? a. increases decreases. no effect 32. We lent $35,000 to a borrower. We vould debit what account? a. accounts receivable b. notes receivable accounts payable notes payable -33. Orporations governmentare chartered by t state c. city d. none of the above The entry for a stock split is debit common stock, credit stock split. 34 a. debit stock split, credit common stock. d. none of the above to two partners at the end of the year? d: mene on the above S. What is the closing entry to record the distribution of profits a. Income Summary Retained Earnings, T. Dovle Retained Earnings, U. Winster : : b. Retained Earnings T. Doyle, Capital U, Winster, Capital Income Summary T. Doyle, Capital U. Winster, Capital d. T. Doyle, Capital U. Winster, Capital Income Summary 36. What is a disadvantage of forming a general partnership? a. agency rights to all the partners b. double taxation c. the partnership cannot operate in more than one state d.it is very difficult to form a partnership compared to a corporation

Explanation / Answer

30) decrease

payable balance decreased means company had spend cash to settle the current payable , so the decrease in pyable denotes the cash spend to settle them . so this will decrease cash balance

31) decrease

when bond are issued cash will be raised due to proceeds and after that cash will decrease on expenditure of purchase of land.

32) note recievable.

account payable is a liability so it should be credited when increases so we can eliminate option c and d

account recievable will only come when sale of goods happend for credit

33) state

corporation is chartered by state, the purpose is for benifit for general piblic.

most of the corporation are created by state government rather than federal government .

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