3 - 1. The effects on the basic accounting equation of...

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The effects on the basic accounting equation of performing services for cash are to: A. increase assets and decrease stockholders' equity. B. increase assets and increase stockholders' equity. C. increase assets and increase liabilities. D. increase liabilities and increase stockholders' equity. 2. Genesis Company buys a $900 machine on credit. This transaction will affect the: A. income statement only. B. balance sheet only. C. income statement and retained earnings statement only. D. income statement, retained earnings statement, and balanc 3. Which of the following events is not recorded in the accounting records? A. Equipment is purchased on account. B. An employee is terminated. C. A cash investment is made into the business. D. The owner withdraws cash for personal use. 4. During 2010, Gibson Company assets decreased $50,000 and its liabilities decreased $90,000. Its stockholders' equity therefore: A. increased $40,000. B.
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This note was uploaded on 02/28/2012 for the course ACCT 460 taught by Professor Charley during the Spring '12 term at Aachen University of Applied Sciences.

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3 - 1. The effects on the basic accounting equation of...

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