1. A deposit into your account at the bank is recorded as a(n)

   1. expense
   2. debit
   3. liability
   4. credit

   2. The cash in your account is an asset to you but a ______ to the bank.

   1. loan
   2. statement
   3. liability
   4. withdrawal

2. One of the basic assumptions underlying the Conceptual Framework of GAAP is the _____________ assumption.

   1. Going concern
   2. Relevance
   3. Revenue Recognition
   4. Timeliness

3. When a company purchases an asset on credit it

   1. increases expenses.
   2. decreases liabilities.
   3. increases liabilities.
   4. decreases expense.

   2. The entry to record a corporations purchase of a printer with cash involves an

   1. increase in a liability & a decrease in an asset.
   2. increase in a liability & a decrease in a liability.
   3. increase in an asset & a decrease in a liability.
   4. increase in an asset & a decrease in an asset.