1. A company delivered $10,000 of goods to a customer that agreed to pay cash within 30 days. The goods had cost $8,000 to manufacture.
Which of the following items would be increased by this sales transaction? (check all that apply)
Cash from Operations
Cost of Goods Sold
Current Assets
Revenue
Accounts Payable
2. A company took delivery of $50,000 of new inventory and agreed to pay cash to the supplier within 30 days.
Which of the following items would be increased by this inventory purchase transaction? (check all that apply)
Total Assets
Cost of Goods Sold
Retained Earnings
Accounts Payable
Accounts Receivable
3. A company collected $100,000 cash from a customer who both received and was billed for the goods last quarter.
Which of the following items would be increased by this cash collection transaction? (check all that apply)
Revenue
Cash from Operations
Total Stockholders' Equity
Total Assets
Accounts Receivable
4. A company collected $10,000 cash from a customer as a deposit for goods that will be shipped next quarter.
Which of the following items would be increased by this cash collection transaction? (check all that apply)
Total Assets
Accounts Receivable
Cash from Operations
Total Liabilities
Revenue
5. A company received $100,000 cash from issuing 10,000 shares of $4 par value stock.
Which of the following items would be increased by this stock issuance transaction? (check all that apply)
Total Assets
Total Liabilities
Revenue
Cash from Operations
Additional Paid in Capital
6. A company received $75,000 cash from a bank loan that must be repaid in three years.
Which of the following items would be increased by this bank loan transaction? (check all that apply)
Current Assets
Interest Payable
Notes Payable
Cash from Investing
Revenue
7. A company declared $500,000 of dividends that will be paid two months from now.
Which of the following items would be increased by this dividend declaration transaction? (check all that apply)
Cash from Financing
Retained Earnings
Dividend Expenses
Total Liabilities
Net Income
8. A company paid $50,000 to its insurance company for fire insurance coverage over the next year.
Which of the following items would be increased by this insurance prepayment transaction? (check all that apply)
Prepaid Insurance
Net Income
Total Assets
Insurance Expense
Current Liabilities
9. At the end of the quarter, a company did an adjusting entry to record the fact that $1,000 of Prepaid Advertising had been used up during the quarter.
Which of the following items would be increased by this advertising adjusting entry? (check all that apply)
Cash from Operations
Total Liabilities
Cost of Goods Sold
Prepaid Advertising
Advertising Expense
10. A company borrowed $500,000 cash from a bank and used it to purchase $500,000 of new manufacturing equipment.
Which of the following items would be increased by the bank loan and equipment purchase transactions? (check all that apply)
Equipment
Cash from Investing
Cash from Financing
Depreciation
Total Liabilities
11. At the end of the quarter, a company did an adjusting entry to record $5,000 of depreciation on the fleet of automobiles used by the sales force.
Which of the following items would be increased by this depreciation adjusting entry? (check all that apply)
Cash from Operations
Total Assets
SG&A Expense
Total Liabilities
Accumulated Depreciation
12. A company sold a piece of manufacturing equipment for $30,000 cash. The equipment had been listed on the balance sheet at a net book value of $25,000, so the company recorded a gain on sale of equipment of $5,000.
Which of the following items would be increased by this equipment sale transaction? (check all that apply)
Equipment
Cash from Investing
Net Income
Total Assets
Cash from Operations