NAME Final Examination-v.11 Time & Date a. increases assets, increases owner\'s

Question

NAME Final Examination-v.11 Time & Date a. increases assets, increases owner's equity b. increases assets, decreases owner's equity c. increases one asset, decreases another asset d. decreases assets, increases liabilities 2. Revenues are reported when a. a contract is signed b. cash is received from the customer e. work is begun on the job d. work is completed on the job 3. Expenses are recorded when a. cash is paid for services rendered b. a bill is received in advance of services rendered c. assets are used in the process of earning revenue d. assets are purchased Land, originally purchased for $30,000, is sold for $62,000 in cash. What is the effect of the sale on the accounting equation? a. assets increase $62,000; owner's equity increases $62,000 b. assets increase $32,000; owner's equity increases $32,000 c. assets increase $62,000; liabilities decrease $30,000; owner's equity increases $3 d. assets increase $30,000; no change for liabilities; owner's equity increases $62,0 4. Abbie Marson is the sole owner and operator of Great Plains Company. As of the of its accounting period, December 31, Year 1, Great Plains Company has assets o $940,000 and liabilities of $300,000. During Year 2, Marson invested an addition $73,000 and withdrew $33,000 from the business. What is the amount of net inco during Year 2, assuming that as of December 31, Year 2, assets were $995,000, a liabilities were $270,000? a. $45,000 b. $50,000 5. c. $106,000 d. $370,000

Explanation / Answer

1) correct option is "A"

Increase asset(Cash /accounts receivable) and increase equity(retained earning)

2)correct option is "C"

As and when work is begun ,revenue on contract should be recorded irrespective of whether cash is received or not

3)correct option is "c"

expense should be recorded in the period in which revenue in relation to such expense is earned

4)

correct option is "B"

entry :

cash debit 62000

Gain on sale credit     32000

land credit                 30000

Cash (asset increase 62000) and land (asset decrease 30000) -Net increase in asset 32000

gain on sale (equity -Retained earning increase) 32000

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.