Quiz 1 for Acc4Bus

Easier to transfer ownership and raise funds, no personal liability

• Sole proprietorship

• Corporation

Trying to determine whether an advertising proposal will be cost-effective.

• Internal revenue divission

• Marketing Managers

Cash received from issuing new common stock

• Investing activities

• Financing activities

Whether transaction affects revenues

• Cash received for services performed.

• Cash received in exchange for allowing the use of the company’s building

If Morales Company had total assets of $800 and total liabilities of $500. Then...

• Total Equity is $1.300

• Total Equity is $300

Presented below is economic event (transaction)

• Purchased supplies on account

• Recruiting new employees with sallaries $100 per month

Borrowed $60,000 by issuing bonds.

• '+Asset +Liabilities

• '+Assets +Equity

The following accounts, indicate the effect of credit on the account

• Advertising expenses

• Services Revenue

Sends Wil Wheaton a bill for $700 after completing welding work.

• Dr: Cash $700

• Dr: Account receivable $700

Purchased supplies for $910 cash.

• Cr: Supplies $910

• Dr: Supplies $910