{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Acc 201 Sample Test 1form 2 page 2

Acc 201 Sample Test 1form 2 page 2 - originally cost Tracey...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
On December 31, 2007 Larry's Golf Shop Inc. purchased a one-year fire insurance policy for the year 2008, paying $5000 cash. What is the net effect of this transaction on Total Assets, Total Liabilities and Total Stockholders’ Equity as of December 31,2007? A. Total Assets decrease, Total Liabilities decrease, and Total Stockholders’ Equity decrease B. Total Assets increase, Total Liabilities unaffected, and Total Stockholders’ Equity increase C. Total Assets unaffected, Total Liabilities increase, and Total Stockholders’ Equity unaffected D. Total Assets decrease, Total Liabilities increase, and Total Stockholders’ Equity decrease E. Total Assets unaffected, Total Liabilities unaffected, and Total Stockholders’ Equity unaffected 6. On December 31, 2007, Tracey’s Ice Cream Shop sold a piece of land for $10,000 cash that
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: originally cost Tracey $15,000. What is the correct entry to record this transaction? A. Cash $10,000 Gain on Sale of Land $ 5,000 Land $15,000 B. Cash $15,000 Revenue $15,000 C. Cash $10,000 Revenue $10,000 D. Cash $10,000 Land $10,000 E. Cash $10,000 Loss on the Sale of Land $ 5,000 Land $15,000 7. Which of the following statements are true? A. Closing entries bring all revenue accounts to zero balance. B. Closing entries bring all expense account to zero balance. C. Revenue and expense accounts are also called nominal accounts. D. The closing process is consistent with the periodic measurement of income. E. All of the above statements are true. 1...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern