Accounting Chpt 1 Quiz

If a company is considering the purchase of a parcel of land that was acquired by the seller for $105,000 is offered for sale at $190,000, is assessed for tax purposes at $115,000, is considered by the purchaser as easily being worth $180,000, and is purchased for $177,000, the land should be recorded in the purchaser's books at:

$177,000

If assets are $390,000 and liabilities are $198,000, then equity equals:

$192,000

Determine the net income of a company for which the following information is available for the month of July. Employee salaries expense: $196000 Interest expense: 26000 Rent expense: 36000 Consulting revenue: 464000

$206,000

If assets are $383,000 and equity is $129,000, then liabilities are:

$254,000

Use the following information as of December 31 to determine equity. Cash: $70000 Buildings: $188000 Equipment: $219000 Liabilities: $154000

$323,000

If equity is $340,000 and liabilities are $195,000, then assets equal:

$535,000

Rushing had income of $186 million and average total assets of $1,930 million. Its return on assets is:

9.6%

If a company receives $10,800 from a stockholder, the effect on the accounting equation would be:

Assets increase 10800 and equity increases 10800

If a company purchases equipment costing $5,700 on credit, the effect on the accounting equation would be:

Assets increase 5700 and liabilities increase 5700

Alpha Company has assets of $632,000, liabilities of $266,000, and equity of $366,000. It buys office equipment on credit for $91,000. What would be the effects of this transaction on the accounting equation?

Assets increase by 91000 and liabilities increase by 91000

Saddleback Company paid off $50,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

Assets, 50000 decrease; liabilities, 50000 decrease

If a company uses $1,370 of its cash to purchase supplies, the effect on the accounting equation would be:

One asset increases by 1370, and another asset decreases by 1370, causing no effect.

If Houston Company billed a client for $30,000 of consulting work completed, the accounts receivable asset increases by $30,000 and:

Revenue increases 30000