Module 1 Graded Quiz

Beginning Retained Earnings would appear on the _____ and Utilities Expense would appear on the _____

Statement of Retained Earnings; Income Statement

If Liabilities are $400,000 and Stockholders' Equity is $800,000, what is Assets? $

1,200,000

What are total liabilities for the period? $

5,000

If Assets are $250,000 and Stockholders' Equity is $195,000, what are Liabilities? $

55,000

Accounts Receivable would be classified as _____ and Dividends would be classified as _____

Asset: Dividend

A company paid $1,000 of dividends. What is the effect on the overall accounting equation?

Assets: DECREASE Liabilities: NO EFFECT Stockholders' Equity: DECREASE Common Stock: NO EFFECT Revenues: NO EFFECT Expenses: NO EFFECT Dividends: INCREASE

A company pays $7,000 for employee salaries. What is the effect on the overall accounting equation?

Assets: DECREASE Liabilities: NO EFFECT Stockholders' Equity: DECREASE Common Stock: NO EFFECT Revenues: NO EFFECT Expenses: INCREASE Dividends: NO EFFECT

A company purchases equipment for $25,000 cash. What is the effect on the overall accounting equation?

Assets: NO EFFECT Liabilities: NO EFFECT Stockholders' Equity: NO EFFECT Common Stock: NO EFFECT Revenues: NO EFFECT Expenses: NO EFFECT Dividends: NO EFFECT

A customer pays $1,245 of her current $1,500 account balance. What is the effect on the overall accounting equation?

Assets: NO EFFECT Liabilities: NO EFFECT Stockholders' Equity: NO EFFECT Common Stock: NO EFFECT Revenues: NO EFFECT Expenses: NO EFFECT Dividends: NO EFFECT

Service Revenue would be classified as _____ and Accounts Payable would be classified as _____

Revenue; Liability