1. Which of the following is NOT an example of a business transaction?

Purchase of equipment for the business

Payment of monthly utility bills

Use of supplies in operations

All of the choices above are examples of business transactions.

2. Which of the following transactions changes only the mix of assets and liabilities but does not affect owners equity?

Purchase of a video camera for $9,000 and memory cards for $1,000

Cash receipt of $3,500 for filming a customer's wedding not recorded as a receivable previously

Cash payment of utility bills amounting to $1,500 not recorded as a payable previously

Drawings by the owner amounting to $2,000

3. Filming a dance competition and leaving a $3,500 invoice with the customer. This transaction:

Increases the cash account and increases the accounts receivable account by $3,500

Increases the accounts receivable account and increases the service revenue account by $3,500

Decreases the cash account and increases the accounts receivable account by $3,500

Increases the accounts receivable account and decreases the service revenue account by $3,500

4. Withdrawal of $2,000 by the owner from a business for personal use. This transaction:

Decreases the Cash account by $2,000

Increases the Capital account by $2,000

Increases an expense account by $2,000

Both a. and b.