41) A receptionist worked one month and was paid $2,000 at the end of the month. In transaction analysis, how does this transaction affect the accounting equation?
A) Add $2,000 to Cash account and add $2,000 to Accounts Payable account.
B) Add $2,000 to Accounts Receivable account and subtract $2,000 from Cash account.
C) Add $2,000 to Salary Expense and subtract $2,000 from Retained Earnings account.
D) Subtract $2,000 from Cash account and subtract $2,000 from Retained Earnings account.
42) A company declared and paid dividends of $500. In transaction analysis, how does this transaction affect the accounting equation?
A) Add $500 to Revenue account and add $500 to Cash account.
B) Add $500 to Dividends account and add $500 to Accounts Receivable account.
C) Subtract $500 from Retained Earnings account and subtract $500 from Cash account.
D) Add $500 to Dividend Expense account and subtract $500 from Cash account.
43) In transaction analysis, revenues and expenses that arise in different transactions are recorded in the ________ column of the accounting equation.
A) Cash
B) Common Stock
C) Dividends
D) Retained Earnings
44) In transaction analysis, the declaration and payment of dividends is recorded in the ________ and ________ columns of the accounting equation.
A) Dividends, Cash
B) Expenses, Accounts Receivable
C) Expenses, Accounts Payable
D) Retained Earnings, Cash
45) We have used transaction analysis and the accounting equation to record several transactions for a company. The transactions are now recorded on a multi-column spreadsheet of the assets, liabilities and stockholders' equity of the company. If you wanted to prepare an income statement with this spreadsheet, which column would you use?
A) Cash column
B) Accounts Payable column
C) Dividends column
D) Retained Earnings column
46) We have used transaction analysis and the accounting equation to record several transactions for a company. The transactions are now recorded on a multi-column spreadsheet of the assets, liabilities, and stockholders' equity of the company. If you wanted to prepare a statement of cash flows with this spreadsheet, which column would you use?
A) Cash column
B) Accounts Receivable column
C) Retained Earnings column
D) Revenue column
47) We have used transaction analysis and the accounting equation to record several transactions for a company. The transactions are now recorded on a multi-column spreadsheet of the assets, liabilities and stockholders' equity of the company. If you wanted to prepare a balance sheet with this spreadsheet, which column(s) would you use?
A) final balances of asset columns only
B) final balances of liability columns only
C) final balances of stockholders' equity columns only
D) all of the above
48) A multiple-step income statement reports different types of income that include:
A) sales revenue and service revenue.
B) income tax expense, utilities expense, rent expense.
C) gross profit, operating income and net income.
D) cost of goods sold and operating expenses.