Describe how the purchased land for cash affects the three elements of the accounting equation. | Homework.Study.com (2024)

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• Describe how the borrowed cash at a local bank affects the three elements of the accounting equation.
• Describe how the received cash for services performed affects the three elements of the accounting equation.
• A company made cash sales. How does this transaction affect the three elements of the accounting equation?
• Describe how the issued capital stock for cash affects the three elements of the accounting equation.
• Describe how the paid-for utilities used in the business affects the three elements of the accounting equation.
• A company purchased land for cash. How does this affect the company's assets? Do they increase, decrease, or stay the same?
• A company sold $30,000 in merchandise for cash. How would this transaction affect the accounting equation?
• How does the amortization of an intangible asset affect cash flows?
• A company purchased land for $32,000 by issuing a note payable. What was the effect on the accounting equation?
• A company paid $300 cash for supplies it had previously purchased on account. How does this event affect the accounting equation?
• How does the purchase of equipment affect the accounting equation?
• A company purchased a building for $100,000 cash. How does this transaction affect the accounting equation?
• If the business owner purchases equipment with cash, how is the accounting equation affected?
• Viviani Video Store sold land for $15,000, which was the cost of the land. How would this transaction affect the accounting equation?
• How does selling equipment affect the statement of cash flows?
• How, specifically does "Prepaid Rent" impact the elements of the accounting equation?
• What is the effect on the accounting equation when a business receives cash from an account receivable?
• How does gain on sale of equipment affect the cash flow statement?
• Camper Van Company purchased equipment for $2,600 cash. How does this transaction affect the accounting equation?
• How does the payment of dividends of $30,000 affect the three elements of the accounting equation?
• What is the effect on the accounting equation when cash dividends are paid? Explain.
• Explain how transactions affect the accounting equation.
• Explain how the purchase of treasury stock affects the accounting equation.
• What is the effect on the accounting equation when cash dividends are paid?
• What is the effect on the accounting equation when cash dividends are declared? Explain.
• How does the purchase of equipment by signing a note affect the accounting equation?
• A company paid for utilities used in the business. How does this transaction affect the three elements of the accounting equation?
• A company purchased supplies on account for $700. How does this event affect the accounting equation?
• A company paid $5,000 for rent with cash. How would this transaction affect the accounting equation?
• Explain how accrual accounting differs from cash-basis accounting.
• What is the Accounting Equation, and what do each of the elements represent? Discuss why the Accounting Equation is the foundation of accounting. Discuss what components of the accounting equation are
• How can one determine the unadjusted cash balance
• A company distributed $1,050 cash to its owner. How does this transaction affect the accounting equation?
• What is the effect on the accounting equation of writing off an uncollectible account receivable when the allowance method is used?
• Explain theoretically how the recognition of revenue on account (accounts receivable) affect the income statement compared to its effect on the statement of cash flows.
• Explain where a "gain on sale of assets" goes on the cash flow statement.
• How does the statement of cash flows contribute to the question, "How well am I doing?"
• What components within the accounting equation would cash fall under?
• A company paid cash dividends to its stockholders. How does this transaction affect the three elements of the accounting equation?
• Explain how are purchase commitments reported on the balance sheet.
• What is the effect of the accounting equation when cash dividends are declared?
• Explain the accounting equation and how this equation relates to both the balance sheet and the income statement.
• Explain how cash flow data complement the income statement and balance sheet.
• Underwood Corp. purchased supplies for $4,700 on account. How does this transaction affect the accounting equation?
• Describe the cash ratio with an example. Why is this term useful in accounting?
• Describe how to account for the gain or loss on the sale of property, plant, or equipment.
• Suppose your company paid $12,000 in cash for its rent. How does this transaction impact the accounting equation?
• How does the payment of an account payable (resulting from the purchase of inventory) affect net income and cash from operations? Explain whether each of these measures increases, decreases, or is not affected.
• What is the effect on the claims side of the accounting equation when cash is collected in advance of performing services?
• Explain how income is recognized under the cash method of accounting.
• What is natural capital accounting? Name two income statement elements and explain how natural capital accounting might affect each element.
• Explain how inventory accounting affects the cost of goods sold.
• Explain how to get the cash and sales discount from accounts receivable.
• Ken's Maintenance Company purchased $2,400 of equipment on credit. How does this transaction affect the accounting equation?
• A company sold $25,000 in merchandise to a customer on credit. How does this transaction affect the accounting equation?
• What is the effect on the accounting equation when a business pays an account payable?
• How do the elements of the accounting environment affect financial statements? Why are these important?
• Suppose a company sold $25,000 in merchandise to a customer for cash. How does this transaction impact the accounting equation?
• Suppose your company sold $25,000 in merchandise to a customer for cash. How does this transaction impact the accounting equation?
• A company borrows $2 million from its bank. It then uses this money to buy equipment. How do these two transactions affect the company's accounting equation?
• How does an expense affect the balance sheet?
• A company paid the utility bill that it had received last month. How does this transaction affect the three elements of the accounting equation?
• Explain when to record depreciation expenses when a new asset is purchased.
• Explain why a cash flow statement is needed in addition to the balance sheet and income statement.
• Explain what is needed from the income statement for the accounting equation to balance.
• Explain how inventory turnover affects the amount of cash that must be invested in inventory.
• What is the basic accounting equation and what do the various elements present?
• How paying a creditor on account affects the accounting equation?
• What effect does buying inventory have on the cash flow statement?
• Explain whether the goods purchased by a retailer are an expense or an asset.
• Atima opens her business by investing $10,000 cash. How does this affect the accounting equation?
• Describe how accounts receivable arise and how they are accounted for, including the use of a subsidiary ledger and an allowance account.
• How is the accounting equation affected by providing services on account?
• What do proceeds from the sale of the business affect the balance sheet?
• Explain how an inventory balance is affected when a company purchases items for resale and sells items in their stores.
• What will be the entries when an asset is purchased through the payment of cash and a promissory note?
• Draper Consulting purchased supplies on account for $900. How does this transaction affect the accounting equation?
• Explain what accounts are credited when goods are sold on an account.
• A company paid $400 cash for its utility bill. How does this event affect the accounting equation?
• Explain effects on the balance sheet caused by an expense.
• Explain why are back accounts payable added in the cash flow statement.
• How does distributing assets (paying dividends) to owners affect the accounting equation?
• Describe the Accrual Basis of Accounting, and Compare it with the Cash Basis.
• What is the difference between cash-basis and accrual basis of accounting? Provide one example.
• How do journal entries ensure the basic accounting equation (Assets = Liabilities + Owner's Equity) stays in balance? Explain.
• Define Cost of Goods Sold. How is it computed? What two financial reports does it impact and how?
• How is the cash flow statement different from the income statement and balance sheet?
• A business provides $100,000 of services for cash. How does this impact the accounting equation?
• Suppose your company paid $12,000 in cash for its rent for the current month. How does this transaction impact the accounting equation?
• Explain the accounting equation. Why are the assets of a business equal to the liabilities plus owner's equity?
• How do you explain the rationale for not reflecting intercompany merchandise sales on the consolidated financial statements? What impact will this have on accounting for profit?
• How does the accrual of interest affect the balance sheet?
• Explain the difference between cash accounting and accrual accounting.
• When a business owner deposits their own money into the business, how does that affect the accounting equation?
• Viviani Video Store rented out videos and received cash of $300. How would this transaction affect the accounting equation?
• Explain the impact of accounting transactions in financial statements.
• A company received cash of $8,000 and issued common stock. How would this transaction affect the accounting equation?
• Frankel, Inc. purchased $235,000 of merchandise on account. How does this transaction affect the accounting equation?
• What is the effect of paying a liablity on the accounting equation?
• From an accounting standpoint, how does leasing differ from buying property? What factors affect the accounting of it? As a business owner, what elements would affect your decision?