Author Question: Mercy, Inc. purchased a truck for 50,000 cash. The effect of this transaction on the accounting ... (Read 69 times)

Mollykgkg · **on:** Jul 5, 2018

Mercy, Inc. purchased a truck for 50,000 cash. The effect of this transaction on the accounting equation is:

A) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
Increase No effect No effect Increase

B) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
Decrease No effect No effect Decrease

C) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
No effect No effect No effect No effect

D) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
Increase No effect Increase No effect

Question 2

The form of income statement that derives its name from the fact that the total of all expenses is deducted from the total of all revenues is called a
a. multiple-step statement
b. revenue statement
c. report-form statement
d. single-step statement