The transaction preserves the accounting equation and, therefore, does not need

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The transaction preserves the accounting equation and, therefore, does not need to be recorded. Adams decreased its asset "Cash," increased the asset "Truck," and increased the liability "Notes Payable." Adams decreased its asset "Cash," increased the liability "Truck," and increased the asset "Notes Receivable." Adams decreased its asset "Cash." increased the asset "Truck," and increased the liability "Accounts Payable." Adams decreased its asset "Cash," increased the asset "Truck," and increased the asset "Accounts Receivable."

If stockholders' equity was $300,000 on
December 1, 2012, and decreased to $291,000 on December 31, 2012, this could only be true if there had been a dividend declaration of $9,000 during December. If stockholders' equity was $300,000 on
December 1, 2012, and decreased to $291,000 on December 31, 2012, this could only be true if there had been a dividend declaration of $9,000 during December. Which of the following is a significant justification of reporting certain assets at historical cost? Question 9 options: Accrual accounting does not work without historical costs for all assets. Historical costs are the best measure of market value as of balance sheet dates subsequent to acquisition. Historical costs can be reliably measured. Historical costs are usually the most relevant for making decisions about use or disposal of the asset subsequent to acquisition. Which of the following is a significant justification of reporting certain assets at historical cost? Which of the following is a significant justification of reporting certain assets at historical cost? Accrual accounting does not work without historical costs for all assets. Historical costs are the best measure of market value as of balance sheet dates subsequent to acquisition. Historical costs can be reliably measured. Historical costs are usually the most relevant for making decisions about use or disposal of the asset subsequent to acquisition. Accrual accounting does not work without historical costs for all assets. Historical costs are the best measure of market value as of balance sheet dates subsequent to acquisition. Historical costs can be reliably measured. Historical costs are usually the most relevant for making decisions about use or disposal of the asset subsequent to acquisition. The transaction preserves the accounting equation and, therefore, does not need to be recorded. Adams decreased its asset "Cash," increased the asset "Truck," and increased the liability "Notes Payable." Adams decreased its asset "Cash," increased the liability "Truck," and increased the asset "Notes Receivable." Adams decreased its asset "Cash." increased the asset "Truck," and increased the liability "Accounts Payable." Adams decreased its asset "Cash," increased the asset "Truck," and increased the asset "Accounts Receivable."

If stockholders' equity was $300,000 on
December 1, 2012, and decreased to $291,000 on December 31, 2012, this could only be true if there had been a dividend declaration of $9,000 during December. Question 10 options: True
False

Which of the following is a significant justification of reporting certain assets at historical cost? Question 9 options: Accrual accounting does not work without historical costs for all assets. Historical costs are the best measure of market value as of balance sheet dates subsequent to acquisition. Historical costs can be reliably measured. Historical costs are usually the most relevant for making decisions about use or disposal of the asset subsequent to acquisition. Adams, Inc., a manufacturing company, purchased a truck by paying $10,000 and giving a note payable, to be paid over a period of three years, for $50,000 to the seller. What was the effect of the transaction on the books (accounts) of Smith, Inc.?

Explanation / Answer

6)Adams decreased its asset "Cash," increased the asset "Truck," and increased the liability "Notes Payable."

False as if there was a declaration of dividend the balance would have increased and not decreased.

9) Historical costs can be reliably measured

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