College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Question
Chapter 3, Problem 5MC
To determine
Write the correct option for an investment of cash by the owner.
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Check out a sample textbook solutionStudents have asked these similar questions
Multiple choice:
1. If you sell on credit, your cash inflow depends very much on the
A. Cash sales
B. Agreements or unsecured accounts
C. Collection of AR
D. Age of receivables
2. Initial investment of the owner
A. Fixed capital
B. Working capital
C. Capital structure
D. Equity capital
Which of the following transactions would result in an increase in capital employed? A. Paying a trade
payable in cash B. Writing off a bad debt C. Purchasing on credit D. Repaying a loan E. Selling inventory at
a profit F. Increasing the bank overdraft to purchase a non - current asset
An advantage that money has over other assets is that it:
Answer
a. Provides a higher return to the owner
b. Is a safer asset to hold during times of inflation
c. Increases in value over time
d. Has lower transaction costs to use as a means of payment than other assets
Chapter 3 Solutions
College Accounting, Chapters 1-27
Ch. 3 - LO3 To debit an account is to enter an amount on...Ch. 3 - Liability accounts normally have debit balances.Ch. 3 - LO3 Increases in owners equity are entered as...Ch. 3 - Prob. 4TFCh. 3 - LO3 To credit an account is to enter an amount on...Ch. 3 - LO3 A debit to an asset account will decrease it.Ch. 3 - A common example of an asset is (a) Professional...Ch. 3 - The accounting equation may be expressed as (a)...Ch. 3 - LO3 Liability, owners equity, and revenue accounts...Ch. 3 - LO4 To record the payment of rent expense, an...
Ch. 3 - Prob. 5MCCh. 3 - Foot and balance the accounts receivable T account...Ch. 3 - LO3 Complete the following questions using either...Ch. 3 - Analyze the following transaction using the T...Ch. 3 - The following accounts have normal balances....Ch. 3 - What are the three major parts of a T account?Ch. 3 - Prob. 2RQCh. 3 - What is a footing?Ch. 3 - What is the relationship between the revenue and...Ch. 3 - What is the function of the trial balance?Ch. 3 - Prob. 1SEACh. 3 - DEBIT AND CREDIT ANALYSIS Complete the following...Ch. 3 - ANALYSIS OF T ACCOUNTS Richard Gibbs began a...Ch. 3 - NORMAL BALANCE OF ACCOUNT Indicate the normal...Ch. 3 - TRANSACTION ANALYSIS Linda Kipp started a business...Ch. 3 - TRANSACTION ANALYSIS Linda Kipp starred a business...Ch. 3 - ANALYSIS OF TRANSACTIONS Charles Chadwick opened a...Ch. 3 - ANALYSIS OF TRANSACTIONS Charles Chadwick opened a...Ch. 3 - TRIAL BALANCE The following accounts have normal...Ch. 3 - Provided below is a trial balance for Juanitas...Ch. 3 - Provided below is a trial balance for Juanitas...Ch. 3 - Provided below is a trial balance for Juanitas...Ch. 3 - T ACCOUNTS AND TRIAL BALANCE Wilhelm Kohl started...Ch. 3 - NET INCOME AND CHANGE IN OWNERS EQUITY Refer to...Ch. 3 - FINANCIAL STATEMENTS Refer to the trial balance in...Ch. 3 - FOOT AND BALANCE A T ACCOUNT Foot and balance the...Ch. 3 - DEBIT AND CREDIT ANALYSIS Complete the following...Ch. 3 - ANALYSIS OF T ACCOUNTS Roberto Alvarez began a...Ch. 3 - NORMAL BALANCE OF ACCOUNT Indicate the normal...Ch. 3 - TRANSACTION ANALYSIS George Atlas started a...Ch. 3 - TRANSACTION ANALYSIS George Atlas started a...Ch. 3 - ANALYSIS OF TRANSACTIONS Nicole Lawrence opened a...Ch. 3 - ANALYSIS OF TRANSACTIONS Nicole Lawrence opened a...Ch. 3 - TRIAL BALANCE The following accounts have normal...Ch. 3 - Provided below is a trial balance for Bills...Ch. 3 - Provided below is a trial balance for Bills...Ch. 3 - Provided below is a trial balance for Bills...Ch. 3 - T ACCOUNTS AND TRIAL BALANCE Sue Jantz started a...Ch. 3 - NET INCOME AND CHANGE IN OWNERS EQUITY Refer to...Ch. 3 - FINANCIAL STATEMENTS Refer to the trial balance in...Ch. 3 - Craig Fisher started a lawn service called Craigs...Ch. 3 - Your friend Chris Stevick started a part-time...
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Similar questions
- 1. Investments: A. Are the same as savings B. Should be a priority when receiving a paycheck C. Both Are the same as savings and Should be a priority when receiving a paycheck D. None of these 2. An example of a personal asset is a: A. Job B. Paycheck C. Car D. All of these E. None of thesearrow_forward4 45. Which of the following would result in an increase in cash? Select one: Oa. Inventory is purchased O b. Reducing accounts payable O c. Selling inventory on credit Od. A long-term bank loan is obtainedarrow_forwardessment i Since idle cash does not make money, a manager may choose to invest this extra cash in temporary investments called Multiple Choice transaction balances. junk bonds. secured bonds. marketable securities. Saved long-term assets. Helparrow_forward
- Please answer the following question. In this method, the company compares the amount spent on the investment with the discounted expected future cash inflows. a.Payback b.NRV c.Investment d.IRRarrow_forwardWhat happens to cash if the value of other current assets rises? Is it possible that current assets, other from cash, may decrease?arrow_forward1. Explain how capital reduces banking risks. Discuss the importance of cash flows and economic (market) value rather than accounting value.arrow_forward
- If current assets other than cash increase, what is the effect on cash? What about a decrease in current assets other than cash?arrow_forwardWhich one of the following will decrease the cash flow from assets, all else equal? Select one: O a. increase in cash flow to stockholders Ob. increase in cash flow to creditors Oc. increase in operating cash fiow O d. increase in net capital spendin O e. decrease in the change in net working capital Clear my choicearrow_forwardCash flow example from an investing activity is a. Issue of Equity b. Redemption of Debenture c. Purchase of Raw Materials for Cash d. Sale of Investmentarrow_forward
- Which of the following represents a source of cash in the investing section?A. sale of investmentsB. depreciation expenseC. decrease in accounts receivableD. decrease in bonds payablearrow_forwardWhich of the following represents a source of cash in the investing section? A. sale of investments B. depreciation expense C. decrease in accounts receivable D. decrease in bonds payablearrow_forwardD. True or false, the financing activities section of the statement of cash flows reflects the cash flows that affect current assets and liabilities? E. True or false, buying property, plant and equipment would be considered a cash outflow from financing? F. True or false, the financing section of the statement of cash flows reflects transactions in the equity accounts and the long-term liability accounts?arrow_forward
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