MGT Chapter 1 Exam Questions Correctly Answered.
Jackson company purchased office equipment costing $3000 and paid immediately. Record this transaction in the accounting equation - CORRECT ANSWER decrease cash, increase equipment
When recording transactions into the accounting equation, whi...
MGT Chapter 1 Exam Questions Correctly Answered.
Jackson company purchased office equipment costing $3000 and paid immediately. Record this transaction in the accounting equation - CORRECT ANSWER decrease cash, increase equipment
When recording transactions into the accounting equation, which statements are true? - CORRECT ANSWER 1. At least 2 accounts will be affected when recording a transaction
2. The accounting equation must always remain in balance
3. After recording the transaction, total assets will always equal total liabilities + equity
Bakery Company receives its utility bill of $800 and pays it immediately. Record transaction in accounting equation - CORRECT ANSWER Increase expenses, decrease cash
Supplies costing $500 were purchased on credit. Record transaction in accounting equation - CORRECT ANSWER increase supplies, increase accounts payable
When supplies are purchased on credit, it means - CORRECT ANSWER 1. Accounts payable will be increased
2. Business will pay for the supplies at a later time
3. A liability has been incurred
Jackson's catering provided $3000 worth of cookies and received immediate payment. Record transaction in accounting equation - CORRECT ANSWER increase cash, increase revenue
Bakery Company is making a partial payment of $70 cash for baking supplies it purchased in a previous month. Record this transaction in the accounting equation - CORRECT ANSWER decrease accounts payable, decrease cash ABS performs $200 of services for a customer but doesn't get paid right away. Record in accounting equation - CORRECT ANSWER increase accounts receivable, increase revenue
customer makes a partial payment of $100 on a service for which you have already billed him, you would record this transaction in the accounting equation by - CORRECT ANSWER increase cash, decrease
accounts receivable
When a business provides a service to a customer on credit it means - CORRECT ANSWER 1. An asset gas
been created or increased
2. The business will receive payment for its services at a later time
3. Accounts receivable will be increased
If H Hair salon decides to pay cash dividends to their shareholders, what would be decreased? - CORRECT ANSWER cash
Income statement - CORRECT ANSWER describes a business's revenues and expenses over a period of time
What events would appear on a balance sheet - CORRECT ANSWER Cash, accounts payable, retained earning, equipment, supplies
Why does a business need accounting? - CORRECT ANSWER Accounting records business transactions and communicates financial information
Identify the importance of accounting - CORRECT ANSWER Accounting inför helps users make business and financial decisions. It is a system that identifies, record, and communicates financial info.
Users of accounting info can be divided into two main groups - CORRECT ANSWER internal and external
Shareholder - CORRECT ANSWER An owner of a corporation
A creditor - CORRECT ANSWER Loans money or other resources to a business
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ROSEGRADES. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £10.21. You're not tied to anything after your purchase.
