Multiple choice Please circle the best answer 16. Most businesses earn revenues
ID: 2648387 • Letter: M
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Multiple choice Please circle the best answer 16. Most businesses earn revenues A) when they collect accounts receivable B) through sales of goods or services to customers. C) by borrowing money from a bank D) by selling shares of stock to shareholders. 17. The amount of insurance expense reported on the income statement is A) the amount of cash paid for insurance in the current B) period. current the amount of cash paid for insurance in the period less any unpaid insurance at the end of the c) period in the the amount of insurance used up (incurred) current period to help generate revenue D) an increase in net income 18. The following amounts are reported in the ledger of Mariah Company: $80,000 Assets debit. Liabilities $36,000 credit $12,000 Retained credit earnings what is the balance in the contributed capital account? A) $44,000 credit B) $32,000 credit. c) $48,000 credit D) $44,000 debit. E) None of the above is the correct balance. 19. When a company buys equipment for $150,000 and pays for one third in cash and the other two thirds is financed by a note payable the following are the effects on the equation A) cash decreases by $50,000 B) equipment increases by $100,000 C) liabilities increase by $150,000. D) total assets increase by $200,000 E) All of the above effects occur on the equationExplanation / Answer
Ans : Most businesses earn revenues
B. through sales of goods or services to customers.
Ans : The amount of insurance expense reported on the income statement is
C. the amount of insurance used up (incurred) in the current period to help generate revenue.
Ans : Contributed capital accounts : $32,000 [$80,000 - $36,000 - $12,000] Credit.
Ans : Liabilties increase by $150,000
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