What is an example of direct materials?
Cost of robotic equipment in making automobiles
Cost of sandpaper in making wood furniture
Cost of saws and hammers in constructing a house
Cost of aluminum in making an airplane
Correct Answer: Cost of aluminum in making an airplane
What is the effect ...
Which report is one of the three primary financial statements?
Statement of management accounting
Statement of the accounting cycle
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, Statement of stakeholder funds
Statement of cash flows
Correct Answer: Statement of cash flows
A company paid $5,000 cash in advertising costs.
How does this transaction affect the paying company's accounting equation?
Assets decrease by $5,000; liabilities increase by $5,000.
Assets increase by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; expenses increase by $5,000.
Assets decrease by $5,000; revenues increase by $5,000.
Correct Answer: Assets decrease by $5,000; expenses increase by $5,000.
What is a transaction?
Two parties exchanging something of value
A type of commonly used accounting software
A category of merchandiser or retailer
An example of an online business document
Correct Answer: Two parties exchanging something of value
A company borrowed $80,000 cash from a bank.
How does this transaction affect the accounting equation of the borrowing company?
Assets increase by $80,000; liabilities increase by $80,000.
Assets increase by $80,000; owners' equity increases by $80,000.
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