Borrowed $2,500 from the bank on a note payable. For the transaction above in the textbox provided, indicate with the appropriate letter whether the transaction will result in: A. An increase in assets and a decrease in assets. B. An increase in assets and an increase in owner's equity. C. An increase in assets and an increase in liabilities. D. An increase in assets and a decrease in liabilities. E. An increase in assets and a decrease in owner's equity. F. An increase in liabilities and a decrease in owner's equity. G. An increase in owner's equity and a decrease in liabilities. H. A decrease in assets and a decrease in owner's equity. 1. A decrease in assets and a decrease in liabilities. 1. A decrease in liabilities and an increase in owner's equity Only enter a letter in the textbox. (A, B, C, D, E, F, G, H, I, or J)

Borrowed $2,500 from the bank on a note payable. For the transaction above in the textbox provided, indicate with the appropriate letter whether the transaction will result in: A. An increase in assets and a decrease in assets. B. An increase in assets and an increase in owner's equity. C. An increase in assets and an increase in liabilities. D. An increase in assets and a decrease in liabilities. E. An increase in assets and a decrease in owner's equity. F. An increase in liabilities and a decrease in owner's equity. G. An increase in owner's equity and a decrease in liabilities. H. A decrease in assets and a decrease in owner's equity. 1. A decrease in assets and a decrease in liabilities. 1. A decrease in liabilities and an increase in owner's equity Only enter a letter in the textbox. (A, B, C, D, E, F, G, H, I, or J)

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter16: Statement Of Cash Flows: Another Look

Section: Chapter Questions

Problem 18P

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Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. Cash is obtained through short-term bank loans.
1. which of the following transactions will result in the increase and decrease in liability? a. payment of loan by installmentb. borrowed money from the bankc. issued a promissory note in payment of a liabilityd. request for an extension of the date of payment 2. a statement which shows where the money of the business is obtained and used? a. statement of financial positionb. statement of cash flowsc. cash budgetd. statement of revenues and expenses
Which of the following statements is false? Select one: a. The separation of current debt from long-term debt is done on the date of the balance sheet b. Each year, the amount of long-term debt would increase, as a portion is classified as current debt. c. Current assets include cash, accounts receivable and prepaid insurance. d. Long-term assets include vehicles, computers and furniture.
Which of the following would result when a company lends cash to a customer in exchange for a ten month note receivable? a. a noncurrent asset and an investing cash flow are created. b. a noncurrent asset and a financing cash flow are created. c. a current asset and a financing cash flow are created. d. a current asset and an investing cash flow are created.
Show effects of the above transactions on the accounting equation using the following format. Assume the note payable is to be repaid within the year
II. Identification: Identify the following. Write the correct answers on the blanks provided. _is a sum of money received or paid for the use of someone else's money. is the interest earned at the end of the allotted time between the lender and the borrower. 1. 2. 3. _is the interest earned on previously earned interest added to the principal. 4. is used instead of principal. 5. _indicates ownership. 6. is the highest or lowest amount someone is willing to pay for the stocks. 7. _are a portion of the ownership of a company or cooperation. 8. _is the monetary portion of the cooperation's earnings. 9. is a model for determining the price of a stock, based on a future series of dividends that grow at a constant rate. 10. are long-term debt instruments that promise a fixed income in the form of interest.
Which of the following options indicate how quickly accounts receivables are converted into cash? Select one: a. Total assets turnover b. Days to collect accounts receivable c. Working capital d. Accounts receivable turnover
The purchase of equipment financed by a long-term notes payable is an example of ________. A non-cash investing and financing activity B investing activity C operating activity D financing activity
How would each of the following items be reported on the balance sheet? a. Accrued vacation pay. b. Estimated taxes payable. c. Service warranties on appliance sales. d. Bank overdraft. e. Employee payroll deductions unremitted. f. Unpaid bonus to officers. g. Deposit received from customer to guarantee performance of a contract. h. Sales taxes payable. i. Gift certificates sold to customers but not yet redeemed. j. Premium offers outstanding. k. Discount on notes payable. l. Personal injury claim pending. m. Current maturities of long-term debts to be paid from current assets. n. Cash dividends declared but unpaid. o. Dividends in arrears on preferred stock. p. Loans from officers.
Which of the following is considered cash for financial reporting purposes? a. Accounts receivable.b. Investments with maturity dates greater than three months.c. Checks received from customers.d. Accounts payable.
Identify which of the following items is a noncash investing and financing activity that must be reported in a note to the statement of cash flows. (Check all that apply.) O Retirement of debt by issuing stock O Lease of an asset in a long-term lease transaction O Repayment of a note with cash O Purchase of a plant asset with cash
The entry to record interest expense on a bank loan payable is a a. debit to interest expense and credit to note payable. b. debit to note payable and credit to interest revenue. c. debit to interest payable and credit to interest revenue. d. debit to interest expense and credit to interest payable.