For each of the following events affecting the stockholders’ equity of Noland, indicate whether the event would: increase retained earnings

Match each of the following accounts to its proper balance sheet classification.

Retained earnings Long-term investments Current assets Current liabilities Property, plant, and equipment Common stock Intangible assets Long-term liabilities		Accounts payable
Intangible assets Retained earnings Current assets Current liabilities Long-term liabilities Property, plant, and equipment Long-term investments Common stock		Accounts receivable
Property, plant, and equipment Current liabilities Retained earnings Common stock Intangible assets Current assets Long-term investments Long-term liabilities		Accumulated depreciation
Common stock Current liabilities Long-term investments Current assets Intangible assets Long-term liabilities Property, plant, and equipment Retained earnings		Buildings
Long-term investments Long-term liabilities Property, plant, and equipment Retained earnings Intangible assets Current assets Current liabilities Common stock		Cash
Intangible assets Current assets Retained earnings Current liabilities Long-term investments Long-term liabilities Property, plant, and equipment Common stock		Goodwill
Long-term liabilities Current assets Common stock Property, plant, and equipment Retained earnings Current liabilities Intangible assets Long-term investments		Income taxes payable
Long-term liabilities Intangible assets Retained earnings Property, plant, and equipment Current assets Current liabilities Common stock Long-term investments		Investment in long-term bonds
Long-term investments Intangible assets Retained earnings Long-term liabilities Common stock Current assets Current liabilities Property, plant, and equipment		Land
Current liabilities Long-term investments Long-term liabilities Current assets Property, plant, and equipment Common stock Intangible assets Retained earnings		Inventory
Common stock Retained earnings Current assets Long-term liabilities Property, plant, and equipment Intangible assets Current liabilities Long-term investments		Patent
Long-term liabilities Property, plant, and equipment Intangible assets Current assets Current liabilities Common stock Retained earnings Long-term investments		Supplies

For each of the following events affecting the stockholders’ equity of Noland, indicate whether the event would: increase retained earnings, decrease retained earnings, increase common stock, or decrease common stock.

(a)		Decrease Common Stock Decrease Retained Earnings Increase Retained Earnings Increase Common Stock		Issued new shares of common stock
(b)		Decrease Retained Earnings Increase Retained Earnings Increase Common Stock Decrease Common Stock		Paid a cash dividend
(c)		Decrease Retained Earnings Increase Common Stock Decrease Common Stock Increase Retained Earnings		Reported net income of $75,000
(d)		Increase Common Stock Decrease Retained Earnings Increase Retained Earnings Decrease Common Stock		Reported net loss of $20,000

The activity from the balance sheet to be presented in the financing activities section of the statement of cash flows is based on an analysis of stockholders' equity only.

If a company reports a net loss, it

will not be able to get a loan.

will not be able to make capital expenditures.

will not be able to pay cash dividends.

may still have a net increase in cash.

The activity from the balance sheet to be presented in the financing activities section of the statement of cash flows is based on an analysis of stockholders' equity only.

True

False

Which of the following is not an example of a source document that provides evidence of a transaction?

The complete effect of a transaction on the accounts is disclosed in the journal.

True

False

A trial balance is a listing of

the totals from the journal pages.

transactions in a journal.

the chart of accounts.

general ledger accounts and balances.

Which of the following is not an example of a source document that provides evidence of a transaction?

A sales slip

A trial balance

A cash register tape

A cancelled check

A trial balance does not prove that all transactions have been recorded or that the ledger is correct.

True

False

In recording accounting transactions, evidence that a transaction has taken place is obtained from

the Securities and Exchange Commission.

source documents.

the Internal Revenue Service.

the public relations department.

The current balance of an account is not needed when making journal entries.Which of the following is not a part of a complete journal entry?

The current balance of an account is not needed when making journal entries.

Which of the following is not a part of a complete journal entry?

The balance of each account affected by the transaction

The date of the transaction

The accounts and amounts to be debited and credited

A brief explanation of the transaction

An account is an individual record of specific account detail.

Which statement about an account is true?

An account is an individual accounting record of increases and decreases in specific asset, liability, and stockholders’ equity items.

In its simplest form, an account consists of two parts.

The right side of an account is the debit side.

There are separate accounts for specific assets and liabilities but only one account for stockholders’ equity items.