1.

Which of the following transactions would not affect Cash?

payment of salaries for the week

prepaying an insurance premium

payment to a supplier on account

purchase of supplies on account

2.

If expenses, in a proprietorship, are paid in cash, then

liabilities will decrease.

assets will increase.

owner's equity will increase.

assets will decrease.

3.

Funds received before the delivery of goods and services would be shown as

unearned revenue on the statement of earnings.

unearned revenue on the balance sheet.

a credit to cash.

sales or service revenue on the statement of earnings.

4.

Which of the following would not result in unearned revenue?

rent collected in advance from tenants

services performed on account

sale of season tickets to hockey games

sale of two-year magazine subscriptions

5.

Rockport Quarry signed a four-month, 5%, $9,000 note payable on September 1. The amount of interest to be accrued at the end of September is

$112.50.

$37.50.

$150.

$450.