Student Name latermediate Accousting Owir Student ID Oer. 2018 Question l: MC Questions (I marks each, total 20 marks) A increases an asset $600, decreases an asset $600 B. increases an asset $600: decreases a liability $600 C decreases a liability $600, increases stockholders' equity $600 1 Collection of a $600 Accounts Receivable D decreases an asset $600; decreases a liability $600. 2 When cash is collected for a previously written-off account A total assets will remain the same B. stockholders equity will increase. C. total assets will increase D. total assets wil decrease. A revenue generally A increases assets and liabilities B. increases assets and stockholders equity C. increases assets and decreases stockholders' equity D. leaves total assets unchanged 3. 4. Which of the following items has no effect on retained earnings? A Expense B. Dividends C. Land purchase D. Revenue 5. If a purchaser using a perpetual inventory system pays the transportation costs, then the A Merchandise Inventory account is increased B. Merchandise Inventory account is not affected C. Freight-out account is increased D. Delivery Expense account is increased. 6. A credit sale of $800 is made on April 25, terms 2/10, net/30, on which a return of $50 is granted on April 28. What amount is received if the customer pay on May 1? A $735 B. $784 C. $800 D. $750 7. The Sales Returns and Allowances account is classified as a(n) A asset account B. contra asset account. C. expense account. D. contra revenue account