On February 1, Potter Company paid 900 for advertisements to run during the month of February. This transaction will

decrease Cash and decrease Advertising Expense by 900.

decrease Cash and decrease Advertising Expense by 900.

decrease Cash and increase Advertising Expense by 900.

decrease Cash and increase Advertising Expense by 900.

decrease Accounts Payable and decrease Cash by 900.

decrease Accounts Payable and decrease Cash by 900.

increase Advertising Expense and increase Accounts Payable by 900.

increase Advertising Expense and increase Accounts Payable by 900.

Question 2

McDonagal Inc. sold ordinary shares for 2,200,000. This transaction will increase

Cash and increase Retained Earnings by 2,200,000.

Cash and increase Retained Earnings by 2,200,000.

Cash and increase Share Capital by 2,200,000.

Cash and increase Share Capital by 2,200,000.

Service Revenue and increase Share Capital by 2,200,000.

Service Revenue and increase Share Capital by 2,200,000.

Service Revenue and increase Cash by 2,200,000.

Service Revenue and increase Cash by 2,200,000.

Question 3

On June 6, Wing Wah Inc. purchased supplies on account for HK$80,000. On June 30, the company paid half of the balance due. The June 30 payment will

decrease Cash and increase Supplies Expense by HK$ 80,000.

decrease Cash and increase Supplies Expense by HK$ 80,000.

decrease Supplies and increase Supplies Expense by HK$40,000.

decrease Supplies and increase Supplies Expense by HK$40,000.

increase Cash and decrease Accounts Receivable by HK$40,000.

increase Cash and decrease Accounts Receivable by HK$40,000.

decrease Cash and decrease Accounts Payable by HK$40,000.

decrease Cash and decrease Accounts Payable by HK$40,000.

Question 4

The accounting process involves all of the following except

communicating financial information to users by preparing financial reports.

communicating financial information to users by preparing financial reports.

analyzing and interpreting financial reports.

analyzing and interpreting financial reports.

recording non-quantifiable economic events.

recording non - quantifiable economic events.

identifying economic events that are relevant to the business.

identifying economic events that are relevant to the business.

Question 5

At October 1, 2017, Padilla Industries had an accounts payable balance of 90,000. During the month, the company made purchases on account of 75,000 and made payments on account of 120,000. At October 31, 2017, the accounts payable balance is

120,000

120,000

30,000

30,000

45,000

45,000

90,000

90,000

Question 6

On January 11, 2017, Britannica Corporation sold ordinary shares to investors for 6,550,000. This transaction will increase assets and

increase revenues by 6,550,000.

increase revenues by 6,550,000.

increase equity by 6,550,000.

increase equity by 6,550,000.

decrease liabilities by 6,550,000.

decrease liabilities by 6,550,000.

decrease equity by 6,550,000.

decrease equity by 6,550,000.

Question 7

As of December 31, 2017, Lojas Company reported assets of R$9,250,000, liabilities of R$2,750,000, share capital of R$2,475,000 and retained earnings of R$4,025,000. Total equity reported on the statement of financial position as of that date is

R$1,550,000.

R$1,550,000.

R$4,025 000.

R$4,025 000.

R$6,500 000.

R$6,500 000.

R$2,475.000.

R$2,475.000.

Question 8

As of December 31, 2017, Oxford-Welsh Inc. had assets of 9,780,000, liabilities of 2,970,000, and share capital of 4,230,000. Retained earnings as of that date are

2,580,000.

2,580,000.

5,550,000.

5,550,000.

7,200,000.

7,200,000.

6,810,000.

6,810,000.

Question 9

All of the following transactions increase revenue except the

sale of additional ordinary shares by British Airways.

sale of additional ordinary shares by British Airways.

performance of acccounting services by PricewaterhouseCoopers.

performance of acccounting services by PricewaterhouseCoopers.

sale of clothing by the French Connection.

sale of clothing by the French Connection.

sale of pertroleum by Royal Dutch Shell.

sale of pertroleum by Royal Dutch Shell.

Question 10

The equity section of a statement of financial position has two components:

share capital and assets.

share capital and assets.

share capital and liablities.

share capital and liablities.

share capital and retained earnings.

share capital and retained earnings.

assets and liablities.