This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: d. Liabilities increase and equity decreases. 5. ABC Company accepts a credit card in payment for $1,500 of services performed for a cus-tomer. The credit card company charges a 4 percent service fee. Recording the transaction on ABC’s records will a. increase assets by $1,440. b. increase expenses by $60. c. increase revenue by $1,500. d. all of the above. 6. Training Services, Inc. (TSI) recognized accrued interest revenue at the end of its current ac-counting period. The result of this recognition is to a. Increase assets, liabilities, and equity. b. Increase assets and equity with no effect on liabilities. c. Increase assets and liabilities and decrease equity. d. Increase cash flow from operating activities. 5-1 *Use your book to fill in any gaps not covered during the lecture for Chapter 5. You are responsible for any material in the book as well as lecture material. Solutions to Review Questions Question Answer 1 A 2 D 3 C 4 C 5 D 6 B 5-2...
View Full Document
This note was uploaded on 02/10/2011 for the course ACC 201 taught by Professor Cromartie during the Spring '11 term at UNC Greensboro.
- Spring '11
- Financial Accounting