Quiz AC-12 - 21. Question: ABC Company had a cash sale. How...

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21. Question: ABC Company had a cash sale. How is it recorded? Your Answer: Increase assets, increase liabilities. Increase assets, increase owners' equity. CORRECT Increase one asset; decrease another asset. Decrease liabilities; increase owners' equity. Points Received: 1 of 1 Comments: 22. Question: ABC Company had a sale to a customer on account. How is this transaction recorded? Your Answer: Increase assets; increase liabilities. INCORRECT Increase assets; increase owners' equity. CORRECT ANSWER Increase one asset; decrease another asset. Increase liabilities; decrease owners' equity Points Received: 0 of 1 Comments: 23. Question: ABC Company purchased land by paying a downpayment and financing the rest with the bank. How is it recorded? Your Answer: Increase Land; decrease cash; increase Note Payable. CORRECT ANSWER Increase Land; increase cash; increase Note Payable Increase Land; decrease cash; decrease Note Payable INCORRECT Increase Land; increase cash; decrease Note Payable. Points Received: 0 of 1 Comments: 24. Question: ABC Company borrowed $1,000,000. How is it recorded? Your Answer:
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This note was uploaded on 06/20/2010 for the course FINA 6266 taught by Professor Burt during the Spring '10 term at University of Arkansas for Medical Sciences.

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Quiz AC-12 - 21. Question: ABC Company had a cash sale. How...

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