1. A business transaction is: a. any financial event that changes the resources of the firm. b. any financial event that changes the ownership of the firm. c. any nonfinancial event that changes the resources of the firm. d. any nonfinancial event that changes the ownership of the firm. 2. Which transaction below increases an asset and the owner's equity? a. a purchase of equipment on credit b. a purchase of equipment with cash c. payment of rent with cash d. a sale of merchandise on credit 3. Amounts that a business must pay in the future are known as: a. accounts receivable. b. revenue. c. expense. d. accounts payable. 4. Elizabeth Tolliver purchased a computer for $6,700 on account for her business. What is the effect of this transaction? a. Equipment decrease of $6,700 and Accounts Payable increase of $6,700 b. Equipment increase of $6,700 and Acoounts Payable increase of $6,700 c. Equipment increase of \$6,700 and Cash increase of $6,700 d. Cash decrease of $6,700 and Owner's Equity increase of $6,700 5. Pauline Palmer began a new business by depositing $100,000 in the business bank acoount. She wrote two checks from the busin a. 575,000 b. 9100,000 c. $80,000 d. $125,000 6. Oriental Rugs has no liabilities. The assets and owner's equity balances are as follows. What is the balance of supplies? Cash Office Equipment Supplies Johnny Johnaon, Capital 3150,000 550.000 7??? $230,000 a. $15,000 b. $20,000 c. $30,000 d. $40,000 7. Precision Drilling has the following balances in its assets and liability acoounts. What is the balance of Avion Canada, Capital? a. $206,200 b. 5200,600 c. 9212400 d. 5216,200