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Didn't know it? Knew it? Embed Code - If you would like this activity on your web page, copy the script below and paste it into
your web page. From Chapter 1 to 4
When a company pays cash for equipment What is the effect?No Change. Because, payment of cash to acquire equipment will result in decrease of Assets, and when the equipment is acquired, it will result in increase of Assets, which ultimately have no effect on the Accounting Equation.
When a company pays cash to purchase supplies what is the total amount of assets?When a company pays cash to purchase supplies one asset account (cash) decreases and another asset account (supplies increases). The amount of total assets is not affected. Expenses and liabilities are not affected.
When a company pays utilities of $1850 in cash the transaction is recorded as?When a company pays utilities of $1,850 in cash, the transaction is recorded as: Debit utilities expense $1,850, credit cash $1,850.
What happens to a business's accounts when it receives cash from sales?When your small business collects cash from a customer at the time of a sale, your cash account increases by the amount collected and your revenue account increases by the same amount. Cash is an asset account. Revenue increases stockholders' equity.
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