111.Stockholders' equity is decreased by
a. assets.
b. revenues.
c. expenses.
d. liabilities.
112.If total liabilities increased by $4,000, then
a. assets must have decreased by $4,000.
b. stockholders' equity must have increased by $4,000.
c. assets must have increased by $4,000, or stockholders' equity must have decreased by $4,000.
d. assets and stockholders' equity each increased by $2,000.
113.Collection of a $500 Accounts Receivable
a. increases an asset $500; decreases an asset $500.
b. increases an asset $500; decreases a liability $500.
c. decreases a liability $500; increases stockholders' equity $500.
d. decreases an asset $500; decreases a liability $500.
114.Revenues are
a. the cost of assets consumed during the period.
b. gross increases in stockholders' equity resulting from business activities.
c. the cost of services used during the period.
d. actual or expected cash outflows.
115.If an individual asset is increased, then
a. there must be an equal decrease in a specific liability.
b. there must be an equal decrease in stockholders' equity.
c. there must be an equal decrease in another asset.
d. none of these is possible.
116.If services are rendered for credit, then
a. assets will decrease.
b. liabilities will increase.
c. stockholders' equity will increase.
d. liabilities will decrease.
117.If expenses are paid in cash, then
a. assets will increase.
b. liabilities will decrease.
c. stockholders' equity will increase.
d. assets will decrease.
118.If a corporation distributes cash to its stockholders, then
a. there has been a violation of accounting principles.
b. stockholders' equity will increase.
c. stockholders' equity will decrease.
d. there will be a new liability showing the stockholders owe money to the business.
119.If supplies that have been purchased are used in the course of business, then
a. a liability will increase.
b. an asset will increase.
c. stockholders' equity will decrease.
d. stockholders' equity will increase.
120.As of December 31, 2011, Sievers Company has assets of $70,000 and stockholders' equity of $40,000. What are the liabilities for Sievers Company as of December 31, 2011?
a. $30,000.
b. $20,000.
c. $50,000.
d. $40,000.