EXERCISES Exercise 2-1 Classifying accounts LO 2, 3 The following accounts are from Yoojin Chang's interior design company, Big Apple Design complete the following. The first one has been completed for you as an example. (1) The basic account category (asset, liability, owner's capital, withdrawal, revenue, or ext! (2) The financial statement the account is recorded on (Income Statement, Statement Equity, or Balance Sheet). (3) The normal balance (debit or credit). (4) The effect of a debit to the account (increase or decrease). (5) The effect of a credit (increase or decrease). a. Cash b. Supplies c. Accounts payable d. Yoojin Chang. Capital Account e. Yoojin Chang. Withdrawals f. Design Revenue g. Salaries Expense h. Accounts Receivable 1. Notes Payable j. Prepaid Insurance (1) Basic Account (2) Financial Statement Balance Sheet (3) Normal Balance Debit (4) Effect of a Debit increase Question 18 (1 point) Due to containerization, the transportation costs associated with the globalization production have: 1) declined O 2) reduced insurance costs 3) increased dramatically 4) remained the same 5) increased slightly Question 19 (1 point) Saved Question 8 (1 point) Since 1992, most of the world's changes to FDI have done what? 1) decreased production O2) had no impact on FDI 3) blocked FDI 4) decreased wealth 5) created a more favourable environment for FDI