Purchasing computer equipment for cash will
A. Increase both total assets and total liabilities.
B. Decrease both total assets and stockholders’ equity.
C. Decrease both total liabilities and stockholders’ equity.
D. Have no effect on total assets, total liabilities, or stockholders’ equity.
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Purchasing a building for $80,000 by paying cash of $25,000 and signing a note payable for $55,000 will
A. Increase both total assets and total liabilities by $80,000.
B. Increase both total assets and total liabilities by $55,000.
C. Decrease total assets and increase total liabilities by $25,000.
Decrease both total assets and total liabilities by $25,000.
What is the effect on total assets and stockholders’ equity of paying the telephone bill as soon as it is received each month?
A. Decrease Total assets and No effect on Stockholders’ equity
B. No effect on Total assets and No effect on Stockholders’ equity
C. Decrease Total assets and Decrease Stockholders’ equity
D. No effect on Total assets and Decrease Stockholders’ equity
Which of the following transactions will increase an asset and increase a liability?
A. Buying equipment on account.
B. Purchasing office equipment for cash.
C. Issuing stock.
D. Payment of an account payable.
Which of the following transactions will increase an asset and increase stockholders’ equity?
A. Collecting cash from a customer on an account receivable.
B. Performing a service on account for a customer.
C. Borrowing money from a bank.
D. Purchasing supplies on account.
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