QUESTION 19 Ethics are the standards of conduct by which one's actions are judged as O a.right or wrong. Ob.honest or dishonest. O c. fair or unfair. Od. All of these answers are correct. QUESTION 20 Which of the following will not cause a change in the stockholders' equity of a business? O An increase in prepaid expenses. O An increase in retained earnings. O The sale of common stock. The declaration and payment of dividends. QUESTION 21 Hancock Company issued stock to Peter Hancock in exchange for his investment of $75,000 cash in the business. The company recorded revenues of $555,000, expenses of $420,000, and had paid dividends of $30,000. What was Hancock's net income for the year? O a $105,000 O b.$135,000 O c $165,000 O d. $180,000. QUESTION 23 10 po 30. Tom Cat Company purchases $1,300 of equipment from Jerry Mouse Inc. for cash. The effect on the basic accounting equation of Tom Cat Company is O an increase in assets and liabilities. O a decrease in assets and liabilities. O no change in total assets. O an increase in assets and a decrease in liabilities QUESTION 22 10 po If total liabilities decreased by $50,000 and stockholders' equity increased by $30,000 during a period of time, then total assets must change by what amount and direction during that same period? O a $80,000 decrease O b. $20,000 decrease O $20,000 increase O d.$80,000 increase QUESTION 20 Which of the following will not cause a change in the stockholders' equity of a business? O An increase in prepaid expenses. O An increase in retained earnings. The sale of common stock. The declaration and payment of dividends. QUESTION 21 Hancock Company issued stock to Peter Hancock in exchange for his investment of $75,000 cash in the business. The company recorded revenues of $555,000, expenses of $420,000, and had paid dividends of $30,000. What was Hancock's net income for the year? O a $105,000 O b.$135,000. O c. $165,000. O d. $180,000 QUESTION 23 10 po 30. Tom Cat Company purchases $1,300 of equipment from Jerry Mouse Inc. for cash. The effect on the basic accounting equation of Tom Cat Company is O an increase in assets and liabilities. O a decrease in assets and liabilities. O no change in total assets. O an increase in assets and a decrease in liabilities QUESTION 22 10 po If total liabilities decreased by $50,000 and stockholders' equity increased by $30,000 during a period of time, then total assets must change by what amount and direction during that same period? O a $80,000 decrease O b. $20,000 decrease O $20,000 increase Od $80,000 increase
