Question

In: Accounting

1. Which of the following events is not a transaction that would be recorded in a...

1. Which of the following events is not a transaction that would be recorded in a company's accounting records?

A. The purchase of equipment for cash

B. The purchase of equipment on account

C. Investment of additional cash in the business by the owner

D. The Death of a key executive

2. On the statement of financial portion, how are assets and liabilities normally presented?

A. Assets are presented in order of liquidity: liabilities are presented in the order in which they become due

B. Assets are presented in order in which they become due; liabilities are presented in the order of permanence

C. Assets are presented in order of profitability; liabilities are presented in the order of liquidity

D. Assets are presented in the order of liquidity; liabilities are presented in order of profitability

3. Which of the following would usually be the greatest amount?

A. The number of shares authorized

B. The number of shares issued

C. The Number of shares outstanding

D. The number of shares of Treasury Stock

Solutions

Expert Solution

Answer 1.

Right answer is Option D. The death of Key executive

Explanation: We records only financial transaction in books of account and the death of Key executive is non finacial, so it will not be recorded in books.

rest of the option a, b and c are the in the financial nature so these are to be recorded in books.

Answer 2.

Right answer is Option A. Assets are presented in order of liquidity: liabilities are presented in the order in which they become due

Explanation: Assets are presented in order to Liquidity example : First Cash, the Current Assets then Non current Assets

and

Liabilities are presented in order to they becomes due

example : Current Liability, then non current liabilities and so on

Answer 3:

Right answr is Option A. The number of Authorized Share

Explanation : Authorized Shares are the maximum number of share that the company can issue, So it is the usually greatest amount.

ekkarill92 answered 2 years ago
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