1. Which of the following transactions when journalized and posted will not in any way cause a change in the owner's capital? a. Purchase of equipment on account b. Withdrawal of cash or other assets by the owner c. Providing services to a customer on account d. Payment of an expense 2. Using the accounting equation, if the total owner's equity increased by $7,000, then: a. Assets must have decreased by $7,000 b. Liabilities must have increased by $7,000 c. Assets must have increased by $7,000, or liabilities must have decreased by $7,000 d. Assets and liabilities cach increased by $7,000 3. Accountants assume that the dollar's purchasing power is relatively stable. This describes which GAAP principle? a. The Going-Concern Assumption 1. The Reliability Characteristic 2. The Monetary-Unit Assumption d. The Matching Principle 4. Using the accounting equation, if the total owner's equity decreased by $3,000, then: a. We may have paid an expense in the amount of $3,000 b. We may have paid an invoice on account in the amount of $3,000 c. We may have sold product on account in the amount of $3,000 d. The owner made a contribution of cash to the business in the amount of $3,000 5. Which is the third and final financial statement completed? a. Statement of Owners' Equity b. General Journal c. Balance Sheet d. Income Statement