1. The accurate recording of each financial transaction will require how many T-account entries?

A. Only one

B. Only two

C. Two or more

2. The T account for Cash & Equivalents would normally have a ____ balance.

A. Debit

B. Credit

3. When an owner draws $5,000 from a sole proprietorship or when a corporation declares and pays a $5,000 dividend, the asset Cash decreases by $5,000. What is the other effect on the balance sheet?

A. Retained Earnings decreases

B. Accounts Payable decreases

C. None of them

4. The accounting method used to automatically reduce the value of a fixed asset by a predetermined value each period is called...

A. depreciation

B. accretion

C. mark-to-market