1. Apple Co. performed services on account. When Apple collects the account receivable

A. assets increase.

B. assets do not change.

C. owners equity decreases.

D. liabilities decrease.

2. Which of the following transactions would not affect owners equity?

A. Payment of an expense

B. Collection of an account receivable

C. Service provided on account

D. Withdrawal of cash by owner

3. If assets increase $80,000 during the period and owners equity decreases $16,000 during the period, liabilities must have:

A. increased $64,000.

B. increased $96,000.

C. decreased $64,000.

D. decreased $96,000.

4. Which of these statements is false?

A. Increases in assets and increases in revenues are recorded with a debit.

B. Increases in liabilities and increases in owners equity are recorded with a credit.

C. Increases in both assets and withdrawals are recorded with a debit.

D. Decreases in liabilities and increases in expenses are recorded with a debit.

5. The following information about the assets and liabilities at the end of 20x1 and 20x2 is given below:

20X1 20X2

Assets $75,000 $90,000

Liabilities 36,000 45,000

If net income was $1,500 and there were no withdrawals, how much did the owner invest?

A. $4,500

B. $6,000

C. $45,000

D. $43,500

6. The journal entry to record the collection of $890 from a customer on account is:

A. Accounts Payable 890

Cash 890

B. Cash 890

Accounts Receivable 890

C. Cash 890

Accounts Payable 890

D. Cash 890

Service Revenue 890

7. Which of these is (are) an example of an asset account?

A. Service Revenue

B. Withdrawals

C. Supplies

D. All of the above are assets

8. In the accounts of S Chan, which of the following double-entries is the correct way to record goods returned by K Wong, a credit customer?

A. Account to Debit Account to Credit

Sales S Chan

B. Account to Debit Account to Credit

Sales K Wong

C. Account to Debit Account to Credit

Returns inwards K Wong

D. Account to Debit Account to Credit

S Chan Returns inwards

9. Which accounts have normal credit balances?

1. revenues, liabilities, and owners equity accounts
2. all temporary accounts
3. liabilities, revenues, and assets
4. assets, expenses, and dividends

10. The ending Cash account balance is $57,600. During the period, cash receipts equal $124,300. If cash payments during the period total $135,100, then the beginning Cash amount must have been $___________:

A. $68,400

B. $46,800

C. $181,900

D. Cannot be determined from the information given.