Conceptual Questions (X mark each) Q4. At the beginning of 2018 Nour Co.'s assets were $300,000 and its equity $100,000. During 2018 assets increased by $80,00 and liabilities increased by $50,000. What was equity at the end of the year? Answer: Owner's equity is $ Q5. Which of the following statements is true? 1 A. An owner's capital account normally has a debit balance. B. A debit entry is always favorable. C. If a company provides services to a customer on credit the selling company should credit Accounts Receivable. D. A transaction that decreases an asset account and increases a liability account must also affect one or more other accounts. E. When a company bills a customer for $600 for services rendered, the journalentry to record this transaction will include a $600 debit to Services Revenue. Q6. Which of the following statements is true? A. Owner's equity is increased when cash is received from customers in payment of previously recorded accounts receivable B. Net income is the excess of expenses over revenues, whereas net loss is the excess of revenues over expenses. C. Owner's contributions and withdrawals are reported on the income statement. D. The balance sheet is based on the accounting equation. E. A balance sheet covers a period of time such as a month or year. 07. Which of the following statements is true? A. Closing entries are necessary so that owner's capital will begin each period with a zero balance. B. Closing entries are required at the end of each accounting period to close all ledger accounts C. Permanent accounts carry their balances into the next accounting period. Moreover, asset, liability and revenue accounts are not closed while a company continues in business. D. The Income Summary account is a permanent account that will be carried forward period after period. E. Closing entries result in revenues and expenses being reflected in the owner's capital account. THIS IS THE LAST PAGE