A200 Ch3 Quiz Version H 1 Ferrell Co provided services of 280 000 to clients on account How does this transaction affect Ferrell s accounts a b c d Increase accounts receivable and cash by 280 000 each Increase accounts receivable and revenues by 280 000 each Increase accounts receivable and unearned revenues by 280 000 each Increase cash and decrease accounts receivable by 280 000 each 2 During 2014 Leslie Inc reported revenues of 287 000 expenses of 175 000 and dividends of 52 000 Which of the following statements is correct a b c d e net income totaled 60 000 net income totaled 112 000 the net increase to retained earnings was 52 000 the net decrease to retained earnings was 60 000 both b and d 3 Barm Company incorrectly recorded the payment of 22 000 for expenses as an increase in cash of 22 000 and a decrease in retained earnings of 22 000 What is the effect of this error on Barm s balance sheet a b c d total assets will exceed total liabilities and stockholders equity by 44 000 total assets will exceed total liabilities and stockholders equity by 22 000 total assets will be less than total liabilities and stockholders equity by 44 000 total assets will be less than total liabilities and stockholders equity by 22 000 A200 Ch3 Quiz Version H Answer Section 1 B 2 B 3 A