Mercy, Inc. purchased a truck for 50,000 cash. The effect of this ...

[Mollykgkg]

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

[wshriver]

Answer to Question 1

C

Answer to Question 2

d

[Mollykgkg]

TYSM

[bigsis44]

Excellent