Chapter 3 - hw Flashcards
1
Q
If total liabilities decreased by $3920, then
A
assets must have decreased by $3920, or stockholders’ equity must have increased by $3920.
2
Q
The purchase of an asset for cash
A
leaves total assets unchanged.
3
Q
If an individual asset is increased, then
A
there could be an equal decrease in another asset.
4
Q
The purchase of an asset on credit
A
increases assets and liabilities.
5
Q
Oriole Company provided consulting services and billed the client $2800. As a result of this event
A
both assets and equity increased by $2800.
6
Q
A revenue generally
A
increases assets and stockholders’ equity.
