11. The classification and normal balance of the accounts payable account is

1. an asset with a credit balance
2. a liability with a credit balance
3. owner's equity with a credit balance
4. revenue with a credit balance

12. A credit balance in which of the following accounts would indicate a likely error?

a. Fees Earned

b. Salary Expense

c. Janet James, Capital

d. Accounts Payable

13. The process of initially recording a business transaction is called

a. closing

b. posting

c. journalizing

d. balancing

14. Gently Laser Clinic purchased laser equipment for $8,500, paid $2,250 down, with the remainder to be paid later. The correct entry would be

a. Equipment Cash	2,250	2,250
b. Cash	2,250
Accounts Payable Equipment	6,250	8,500
c. Equipment Expense	8,500
Accounts Payable Cash		2,250 6,250
d. Equipment Accounts Payable	8,500	6,250
Cash		2,250

16. All of the following accounts are increased with a debit except

1. Unearned Revenues
2. Land
3. Accounts Receivable
4. Cash

17. The accounting equation may be expressed as

a. Assets = Equities Liabilities

b. Assets + Liabilities = Owner's Equity

c. Assets = Revenues Liabilities

d. Assets Liabilities = Owner's Equity