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7) How does the collection of cash from a customer on their account affect the accounting Assets increase; owner's equity decreases Assets b 8) Assets

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7) How does the collection of cash from a customer on their account affect the accounting Assets increase; owner's equity decreases Assets b 8) Assets at the beginning of the year are $48,000. Liabilities at the end of the year are $65,000. Assets during the year experience a net increase of $36,000. capital at the end of the year? What is the amount of the $17,000 c) $19,000 d) $29,000 Four financial statements are is prepared last. The statement of owner's equity (OE), the balance sheet (B), and the income statement (I) are prepared in a certain order to obtain information needed for the nex statement. In what order are these three statements prepared? a) . then l b) B, I then OE x9) c) OE, I then B I, OE then B 10) The total assets and the total liabilities of a particular business enterprise at the beginning and at the end of the year are stated below. During the year, the owner had withdrawn $30,000 for personal use and had made an additional investment in the enterprise of $25,000 Beginning of the year End of the year abilities $290,000 $190,000 $355,000 $220,000 The amount of net income or net loss for the year was a) Net income, $95,000 b) Net income, $25,000 Net income, $30,000 d) Net income, $40,000 11) Which of the following entries records the purchase of supplies on account? a) Accounts Payable, debit; Supplies, credit b) Supplies, debit; Accounts Payable, credit Supplies Expense, debit; Cash, credit d) Supplies Expense, debit; Supplies, credit 12) Which of the following entries records the purchase of a 2-year insurance policy for cash? a) Insurance Expense, debit; Cash, credit b) Prepaid Insurance, debit; Accounts Payable, credit c) Insurance Expense, debit; Accounts Payable, credit d) Prepaid Insurance, debit; Cash, credit

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