Chapters 1 through 3 of Accounting 1-Spring 2019 MULTIPLE CHOICE. he uestion. Choose the one alternative that best completes the statement or answers t ) Operating activities: A) Are also called strategic management. B) Are also called asset management. C) Involve using resources to research, develop, purchase, produce, distribute and market products and services. D) Are the means organizations use to pay for resources like land, buildings and E) Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services. 2) 2) Atkins Company collected S1,750 as payment for the amount owed by a customer from services provided the prior month on credit. How does this transaction affect the accounting equation for Atkins? A) Assets would increase $1,750 and liabilities would increase $1,750. B) Assets would increase $1,750 and equity would increase $1,750. C) Assets would decrease $1,750 and liabilities would decrease $1,750. D) One asset would increase $1,750 and a different asset would decrease $1,750, causing no effect. E) Liabilities would decrease $1,750 and equity would increase $1,750. 3) 3) Billington Corp. borrows $80,000 cash from Second National Bank. How does this transaction affect the accounting equation for Billington? A) Assets would increase $80,000 and liabilities would increase $80,000. B) Assets would decrease $80,000 and liabilities would decrease $80,000. Assets would decrease S80,000 and equity would increase S80,000. D) Liabilities would decrease $80,000 and equity would increase $80,000. E) Assets would increase $80,000 and equity would decrease $80,000. 4) 4) Accounts payable appear on which of the following statements? Statement of retained earnings. B) Income statement. C) Transaction statement. D) Balance sheet. E) Statement of cash flows