1.) paying debt principal with cash:

a) reduces net worth

b) increases net worth

c) doubles net worth

d) has no impact on net worth

e) none of these choices are listed

3.) paying cash for entertainment

a) involves two entries to the income statement

b) involves an entry to the balance sheet and an entry to the income statement

c) involves two entries to the balance sheet

d) involves two entries to the balance sheet and one entry to the income statement

e) none of the choice listed