Textbook 1-3

What is the result of receiving cash from sales in terms of the accounting equation for Oakdale School?

• Decrease in Assets and Owner's Equity

• Increase in Assets and decrease in Owner's Equity

• Increase in both Assets and Owner's Equity

• No change in Assets and Owner's Equity

What is the effect on the accounting equation when TechKnow Consulting sells services on account to Oakdale School?

• Increase in Liabilities and decrease in Owner's Equity

• Increase in Assets and decrease in Owner's Equity

• Increase in both Assets and Owner's Equity

• No change in Assets and Owner's Equity

According to the accounting equation presented, what is the new balance for Cash after receiving cash from sales and selling services on account?

• $3,520

• $3,850

• $3,875

• $4,070

What is the new balance for Kim Park, Capital after both transactions on August 12?

• $5,295

• $5,350

• $5,645

• $5,700

What accounting concept is applied when revenue is recorded at the time of sale, regardless of when payment is made?

• Matching Principle

• Cost Principle

• Revenue Recognition Principle

• Economic Entity Principle

What is the new balance of Cash after paying for rent according to Transaction 8 on August 12?

• $3,520

• $3,220

• $3,180

• $3,500

How much was paid for the telephone bill as noted in Transaction 9 on August 12?

• $300

• $40

• $350

• $775

After paying for the telephone bill, what is the new balance of Kim Park, Capital?

• $5,305

• $5,345

• $5,645

• $5,385

Which of the following transactions decreases the owner's equity account, Kim Park, Capital?

• Paid cash for rent

• Paid cash for telephone bill

• Both A and B

• Neither A nor B

What is the effect on the Cash account when cash is received on account from Oakdale School?

• The Cash account is decreased by $200.

• The Cash account is increased by $200.

• The Cash account is unchanged.

• The Cash account is increased by $125.