Ch02QuizSol - Quiz #2 - Chapter 2 - Solution Please choose...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Quiz #2 - Chapter 2 - Solution Please choose the BEST answer for each of the following 5 questions. 1. (1 pt) When an organization purchases a machine for cash and a note payable, total assets: a. increase b. decrease c. stay the same d. can’t tell without know this specific dollar amounts 2. (1 pt) Lunar Company sold goods to customers from its inventory at a price greater than its cost. Which of the following effects would occur as part of this event? Total assets Total owners would increase equity would increase a. No No b. No Yes c. Yes No d. Yes Yes 3. (1 pt) Which of the three primary financial statements cover a specific period of time? Income Statement and Statement of Cash Flows The balance sheet is at a point in time. 4. (1 pt) Which one of the following statements is generally TRUE regarding the relationship between the items mentioned? a. an increase in assets will always cause an increase in owners' equity b. a decrease in assets will always cause a decrease in liabilities
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/30/2010 for the course ACC 310F taught by Professor Verduzco during the Spring '07 term at University of Texas at Austin.

Page1 / 2

Ch02QuizSol - Quiz #2 - Chapter 2 - Solution Please choose...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online