Harvard - Chapter 1 - The Accounting Equation Study Guide Test.
Charlie Longbottom is excited to get his new web storage site up and running. He purchased two new servers for $5,000 each that he will install in his server room. Charlie was given 30 days credit terms for the servers. How will t...
Harvard - Chapter 1 - The Accounting
Equation Study Guide Test.
Charlie Longbottom is excited to get his new web storage site up and running. He purchased two new
servers for $5,000 each that he will install in his server room. Charlie was given 30 days credit terms for
the servers. How will this purchase impact the accounting equation? Select all that apply. - CORRECT
ANSWER Assets = up 10k
Liabilities = up 10k
Qingji Corp., an oil separator manufacturer, received an advance payment of $50,000 on Aug. 1 for an
order of five oil separators. Qingji Corp. delivered the five oil separators on Nov 1. How will the
accounting equation be impacted when this advance payment was recorded on Aug. 1? Select all that
apply. - CORRECT ANSWER Assets = up 50k
Liabilities = up 50k
Tom's T.V.'s sold one of their premium products, a new 60" flat screen 3D T.V. to a customer who paid
$2,000 in cash. How would the receipt of payment from this sale impact the accounting equation? Select
all that apply - CORRECT ANSWER Assets = up 20K
Equity = up 20k
P&P Accountants, an audit firm, bills $35,000 to AQG Industries for audit work performed related to the
annual audit. P&P requests payment in 15 days. How would this impact the accounting equation of
P&P? Select all that apply. - CORRECT ANSWER Assets = up 35k
Equity = up 35k
Simon's Shoe Store (SSS) purchased 500 pairs of shoes from their sports shoe supplier, Feet of
Endurance (FOE), for $20,000. SSS is a good customer of FOE so they were given 30 days to pay for the
shoes. The 30 days expired and SSS paid FOE for the shoes. How will this payment impact the accounting
equation on the books of SSS? Select all that apply. - CORRECT ANSWER Assets = down 20k
Liabilities = down 20k
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 or Stuvia-credit 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 $11.99. You're not tied to anything after your purchase.