7.

An account will have a credit balance if the

A)debits exceed the credits. B)credits exceed the debits. C)first transaction entered was a credit. D)last transaction entered was a credit.

10.

Which of the following is incorrect as to category, normal balance, financial statement, to increase, to decrease

A)Cash - asset, debit, balance sheet, credit, debit B)Accounts Payable - liabilities, debit, balance sheet, credit, debit C)Common Stock - shareholders equity, debit, balance sheet, credit, debit D)Service Revenue - revenue, credit, income statement, debit, credit E)Dividend - expense, debit, retained earning, debit, credit F)All of these G)None of these

12.

The accounting equation for Eldorado Enterprises is:Assets $100,000 = Liabilities $40,000 + Stockholders' equity Equity $60,000.

If Eldorado purchases equipment for $25,000 and signs a note payable for the same amount, the new accounting equation will be:

A)Assets $75,000 = Liabilities $15,000 + Stockholders' equity $60,000. B)Assets $100,000 = Liabilities $40,000 + Stockholders' equity $60,000 C)Assets $125,000 = Liabilities $40,000 + Stockholders' equity $85,000. D)Assets $125,000 = Liabilities $65,000 + Stockholders' equity $60,000. Thank you for helping. I really hope u can give me the right answer and explain the steps