Reference no: EM132475925

Question 1: Which of the following is not an asset account?

1. Accounts Payable
2. Cash
3. Equipment
4. Supplies

All business events have an immediate and quantifiable effect on the accounting equation.

True or False

Question 2: Which of the following events will not pose an immediate impact on the accounting equation of a retail company?

1. Sale of merchandise
2. A change in marketing strategy
3. Payment of employee salaries
4. Purchase of supplies

Question 3: Sampson Corporation pays dividends of $9,000 to shareholders. Which of the following statements correctly shows the effect of this transaction on the accounting equation?

1. Assets will decrease by $9,000, liabilities will remain unchanged, and stockholders' equity will increase by $9,000
2. Assets will increase by $9,000, liabilities will remain unchanged, and stockholders' equity will increase by $9,000
3. Assets will remain unchanged, liabilities will increase by $9,000, and stockholders' equity will decrease by $9,000
4. Assets will decrease by $9,000, liabilities will remain unchanged, and stockholders' equity will decrease by $9,000