1.

A company acquires a new piece of office equipment on August 15. The purchase price is $4,000. The seller allows the company to pay for the equipment on an installment plan, with the first payment due on Sept. 30. Which of the following statements is correct?

	a.	The company's total assets have increased.
	b.	The company's total liabilities have increased.
	c.	The company's cash balance has not changed.
	d.	All of the above are correct.

2.

An investment by shareholders in a company increases

	a.	assets and liabilities.
	b.	owners' equity only.
	c.	assets and owners' equity.
	d.	liabilities and owners' equity.

3.

After a business transaction has been analyzed and entered in the journal, the next step in the recording process is to transfer the information to

	a.	the trial balance.
	b.	financial statements.
	c.	the company's bank.
	d.	T-accounts.