A company acquires equipment for $75,000 cash. This represents a(n):
a. Operating activity.
b. Investing activity.
c. Financing activity.
d. Revenue activity.
e. Expense activity.
Answer: B
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ACC101 Chapter 3
- Flash had cash inflows from operations $62,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000. The net change in cash was:
- A company borrows $125,000 from the Eastside Bank and receives the loan proceeds in cash. This represents a(n):
- A balance sheet lists:
- The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called:
- If assets are $365,000 and equity is $120,000, then liabilities are:
- If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity?
- If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?
- If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:
- If the liabilities of a business increased $75,000 during a period of time and the owner's equity in the business decreased $30,000 during the same period, the assets of the business must have:
- Viscount Company collected $42,000 cash on its accounts receivable. The effects of this transaction as reflected in the accounting equation are:
- How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?
- Assets created by selling goods and services on credit are:
- On June 30 of the current year, the assets and liabilities of Phoenix Phildel are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of owner's equity as of July 1 of the current year?
- The assets of a company total $700,000; the liabilities, $200,000. What are the claims of the owners?
- Distributions by a business to its owners are called:
- A payment to an owner for personal use is called a(n):
- Which of the following statements is true about assets?
- Another name for equity is:
- The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the:
- Decreases in equity that represent costs of assets or services used to earn revenues are called:
- Creditors' claims on the assets of a company are called:
- The difference between a company's assets and its liabilities, or net assets is:
- Gross increases in equity from a company's earnings activities are:
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