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Unformatted text preview: 1. How does the collection of cash from a customer who was previously put on account affect the accounting equation? (Points: 2) assets decrease; owner's equity decreases assets increase; owner's equity increases assets increase; assets decrease assets increase; liabilities increase 2. If total assets decreased by $88,000 during a period of time and owner's equity increased by $65,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is (Points: 2) $23,000 increase $88,000 decrease $153,000 increase $153,000 decrease 3. How does the purchase of equipment by signing a note affect the accounting equation? (Points: 2) assets increase; assets decrease assets increase; liabilities decrease assets increase; liabilities increase assets increase; owner's equity increases 4. Collins Landscape Company purchased various landscaping supplies on account to be used for landscape designs for their customers. How will this business transaction affect the accounting equation? landscape designs for their customers....
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This note was uploaded on 02/13/2010 for the course AC114 AC114 taught by Professor Duchac during the Spring '09 term at Kaplan University.
- Spring '09