Cash, Accounts Receivable, And Cash Receipts Quiz » Week 4 » Assets In Accounting

Q: If you collect cash for a $500 sale, what accounts increase by $500?

Correct! Cash sales increase the company equity as well as the cash assets.

Q: Your company had a beginning cash balance of $10,000 in October. You sold $5,500 in services for cash and $4,000 to be invoiced. What is your company’s cash balance at the end of October?

Correct! Your cash receipt total would be added to the total cash balance, while the accounts receivable would be recorded on the same side of the equation, assets, but in accounts receivable.

Q: Your company had a beginning equity balance of $8,000 in November. You sold $6,000 in services for cash and $3,500 to be invoiced. What is your company’s equity balance at the end of November?

Correct! Accounts receivable is entered as assets and is reflected in company equity as it increases the retained earnings.

Q: How is the accounting equation useful for detecting entry or calculation errors?

Correct! The accounting equation is always balanced on either side. An unbalanced equation can indicate an accounting error exists somewhere.

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Q:

If you collect cash for a $500 sale, what accounts increase by $500?

View Solution

Q:

Your company had a beginning cash balance of $10,000 in October. You sold $5,500 in services for cash and $4,000 to be invoiced. What is your company’s cash balance at the end of October?

View Solution

Q:

Your company had a beginning equity balance of $8,000 in November. You sold $6,000 in services for cash and $3,500 to be invoiced. What is your company’s equity balance at the end of November?

View Solution

Q:

How is the accounting equation useful for detecting entry or calculation errors?

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