Question
2 . Which answer best describes how this transaction would be reflected in the company's balance sheet? Select one: Retained earnings decreases 80.0, inventory decreases
2 . Which answer best describes how this transaction would be reflected in the company's balance sheet?
Select one:
Retained earnings decreases 80.0, inventory decreases 80.0, retained earnings increases 100.0, accounts receivable increases 100.0
Inventory decreases 80.0, cash increases 100.0, retained earnings increases 20.0
Inventory decreases 80.0, sales increase 100.0, cash increases 100.0, accounts payable decreases 80.0
Cash increases 20.0, sales increases 100.0, inventory decreases 80.0
Which answer best describes how debt issuance would be reflected in the company's balance sheet?
Select one:
Debt increases, common stock increases
Debt increases, cash decreases
Debt increases, cash increases
Debt increases, interest expense increases
Which of the following best describes retained earnings?
Select one:
Provides a description of sources of funding and uses of funding, at a point in time
Shows in and out flows of cash from the company during a period
Total assets less net liabilities equals equity
Records level of reinvested profits
Which answer best describes the change in retained earnings after these transactions?
Cash sale of inventory from storeroom | 100.0 |
Cash sales (in the line above) originally cost | 40.0 |
Credit sale of inventory from storeroom | 95.0 |
Cost of credit sale above | 35.0 |
Cash purchase of machinery (no depreciation) | 70.0 |
Water bill received and paid | 20.0 |
Wages for the period paid in cash | 50.0 |
Shareholders inject capital | 10.0 |
Select one:
125.0
(20.0)
60.0
50.0
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