1. John, the owner of ABC Company, loans his business $50,000. Which of the following types of balance sheet accounts will be affected?

A. assets, B. Liabilities, C. Income, D. Expenses, E. Capital

2. which of the following financial statements would show a loan from the owner of the business.

Income Statement

Balance Sheet

Trial Balance

Receivables Summary

None of the Ave, a loan from the owner of a business should not appear on any financial statement

3.Your company buys $250,000 worth of material on terms of 10% net 10. If you pay for the material within 10 days, which of the following best describes how you should post that entry?

A- Credit Accounts Payable $25000; debit Purchase Discounts $225000.

B- Debit Accounts Payable $250,000 credit Purchase Discounts $25,000 credit Cash $255000

C- Credit Cash $225,000; Debit interest Expense $25000.

D- Credit Cash $225,000; debit income $25,000; debit Accounts payable $250000

E- Credit Equipment $250,000; Debit Cash $250,000