Author Question: The Central Warehouse Internal Service Fund purchased 15,000 of inventory on account, which was ... (Read 117 times)

Pea0909berry · **on:** Jul 5, 2018

The Central Warehouse Internal Service Fund purchased 15,000 of inventory on account, which was unpaid as of the month end. Which of the following statements regarding the accounting for the transaction is false?

A. Expenses in the Internal Service Fund will increase.
B. Capital assets recorded in the Internal Service Fund remain unchanged.
C. The transaction will increase total assets.
D. The transaction will increase total liabilities.

Question 2

The financial statement that shows the state of the firm's assets, liabilities, and owner's equity on a specific date is called a(n)
a. balance sheet.
b. statement of operations.
c. statement of owner's equity.
d. income statement.