A proprietor makes a cash withdrawal from the proprietorship. How does this affect the accounting equation? (Points : 1)
This has no effect on assets, liabilities, or owner’s equity.
Assets decrease; owner’s equity decreases.
Assets increase; liabilities decrease.
Assets decrease; owner’s equity increases
Assume that Esquire consulting erroneously recorded the payment of $30,000 of dividends as salary expense. How would this error affect the equality of the accounting equation? How would this error affect the income statement,
started the accounting period with $30000 in cash assets, $18000 of liabilities and 4000 - common stock. During the yer earned $48000, paid cash expenses of $32,000, paid a cash dividend to stockholders - $2000. Aquired $10,000
Use the following identification codes to indicate the effects of each transaction on the accounting equation: I = Increase; D = Decrease; NE = No Effect. Write your answers in the space provided under the accounting equation,
Record the following transactions using the accounting equation. Example: Assets = Liabilities + Equity XXXX(cash) XXXX(accounts payable) A. Amanda invests $17,000 cash into her merchandising business. B. She buys $6,500 of office
Presented below are three business transactions. For each transaction indicate whether there is an Increase, a Decrease or No Effect on the assets, the liabilities and the owner's equity. Assets Liabilities Owner's Equity (a)
What are some areas or businesses, besides the government, where we may see value in cash accounting strategies? Incidentally, there is one country that does not use cash basis accounting. Does anyone know the country using
Enter transactions: 1. owner contributes $6,00 cash 2. $2,000 in revenue on account 3. $1,500 cash from debtors 4. Rent expense cash $400 5. $300 in cash for salaries invested $2,500 in a certificate of deposit(terms - 12 months,
Working capital Management Indicate how each of the following six different transactions Dynamic mattress might make would would affect I) cash and II)Networking capital A) Paying out a $2 million cash dividend B) A customer