1. Assume a company sold services for $10,000 cash. How does this transaction impact the accounting equation?

a.Assets increase by $10,000 and liabilities increases by $10,000.

b.Assets increase by $10,000 and equity increases by $10,000.

c.Liabilities increase by $10,000 and equity increases by $10,000.

d Assets increase by $10,000 and assets decrease by $10,000.

2.True or False? Some T-accounts only have left sides.

aTrue

bFalse

3 Which of the following options has a normal credit balance?

aRevenues

bAssets

cDividents

dExpenses

The T-account for Cash has the following transactions: Cash sales of $90,000, purchase of equipment for $20,000 cash, and cash payment of rent for $3,000.

4. What is the ending balance in the Cash T-Account?

$67,000 debit balance

$107,000 credit balance

$107,000 debit balance

$67,000 credit balance