1. The accounts payable account has a beginning balance of $12,000 and we purchased $50,000

| June 7, 2016

Question
Hi I’m having trouble with the following 3 question:

1. The accounts payable account has a beginning balance of $12,000 and we purchased $50,000 of inventory on credit during the month. The ending balance was $10,000. How much did we pay our creditors during the month?

2.Which of the following activities would be likely to cause investors to overpay for the acquisition of a company from its current owners?
A) Understated accounts payable and overstated inventory
B) Understated revenues and overstated expenses
C) Understated assets and overstated expenses
D) None of these would cause investors to overpay for the stock

3.

Which of the following transactions will cause both the left (debit) and right (credit) side of the equation to increase?

A) We collect cash from a customer who owed us money.

B) We pay a supplier for inventory we previously bought on account.

C) We borrow money from the bank.

D) We purchase equipment for cash.

E) None of the above will cause both sides of the equation to increase.

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