1 What is the journal entry for the following business transaction: Peter Velk, owner, contributed $10,000 cash in exchange for capital?

		A. Dr. Peter Velk, Capital 10000; Cr. Peter Velk, Withdrawals 10000
		B. Dr. Peter Velk, Capital 10000 Cr. Cash 10000
		C. Dr. Cash 10000; Cr. Peter Velk, Withdrawals 10000
		D. Dr. Cash 10000; Cr. Peter Velk, Capital 10000
		E. None of the above

2 For the following business transaction, what is the effect of the transaction on the accounting equation: Received $2,000 cash from customers for services performed?

		A. Assets Increase; Liabilities Increase
		B. Assets Increase; Equity Decreases
		C. Assets Increase; Assets Decrease
		D. Liabilities Increase; Equity Decreases
		E. None of the above

3 What type of account is Bright, Withdrawals?

		A. Asset
		B. Liability
		C. EquityWithdrawals
		D. Equity--Revenue
		E. Equity--Expense

4 Which of the following account names is a liability account?

		A. Cash
		B. accounts receivable
		C. Accounts payable
		D. service revenue
		E. Rent expense

5 For the following business transaction, what is the effect of the transaction on the accounting equation: Paid $1,000 to assistant for wages?

		A. Assets Increase; Liabilities Increase
		B. Assets Decrease; Equity Decreases
		C. Liabilities Increase; Equity Decreases
		D. Assets Increase; Assets Decrease
		E. None of the above