Danyao Inc. records their business transactions into the basic accounting equation. For each of the following independent business activities, indicate the effect on the basic accounting equation. NOTE: The questions are multi-selection questions. For each business activity choose ALL that apply. Question 81 (2 points) Office supplies of $729, which were previously purchased on account, were used in August. a) Increase equity | b) Decrease assets c) This is an event, not a transaction. d) Decrease equity 220 e) Increase liabilities Of) Increase assets R) Decrease liabilities Question 82 (2 points) In December provided $290 of services to a customer who paid in advance in November. a) Decrease liabilities b) Increase equity c) Decrease equity d) This is an event, not a transaction. e) Increase assets f) Decrease assets g) Increase liabilities Question 83 (2 points) Hired a consulting company to provide $8,000 of services starting next month. a) Increase assets D b) Decrease liabilities c) Increase equity d) Decrease assets e) This is an event, not a transaction Of) Increase liabilities g) Decrease equity Question 84 (2 points) Received a cell phone bill on July 31 for $670. The bill will be paid in early August. a) This is an event, not a transaction. b) Decrease assets c) Decrease equity d) Increase liabilities e) Increase equity f) Decrease liabilities g) Increase assets Question 85 (2 points) Purchased $900 worth of flyers on account from an office supply company. a) Decrease equity b) Increase liabilities c) Decrease assets d) Increase equity e) Increase assets f) Decrease liabilities Og) This is an event, not a transaction. Question 86 (2 points) Dividends of $1,200 were paid to the owners in cash. a) Decrease equity b) This is an event, not a transaction. c) Increase liabilities d) Decrease assets e) Decrease liabilities Increase assets Os) Increase equity Question 87 (2 points) Provided services to a customer worth $4,590, on account. a) Decrease equity b) Increase equity This is an event, not a transaction. d) Increase assets e) Decrease assets Of) Increase liabilities 19 20 O g) Decrease liabilities Question 88 (2 points) Collected $1,050 of accounts receivable from a customer. a) Increase equity b) Increase assets c) Increase liabilities d) This is an event, not a transaction. e) Decrease assets Decrease equity g) Decrease liabilities Question 89 (2 points) A customer paid $835 in cash in October for services to be provided in November. a) Decrease liabilities b) This is an event, not a transaction. c) Increase equity d) Increase liabilities e) Decrease assets Of) Increase assets g) Decrease equity
