Items owned by the business such as land, supplies and equipment are: A) revenue. B) assets. C) liabilities. D) owner's equity What would be the effect on accounts if the business provided services to a customer on account? A) An asset would be debited and an expense credited. B) An asset would be debited and revenue credited. C) Capital would be debited and revenue credited. D) An asset would be debited and Capital credited. Accounts Payable would appear on which financial statement? A) Owner's equity statement B) Income statement C) Balance sheet D) None of these answers are correct. A debit to a liability account was posted to an expense account. This would cause: A) liabilities to be understated. B) owner's equity to be overstated. C) assets to be overstated. D) expenses to be overstated. If a trial balance is not equal, you should first: A) trace all postings. B) look for missing transactions. C) re-compute the ledger balances. D) re-add the trial balance and calculate the difference. As Prepaid Rent is used, the asset becomes a(n): A) liability. B) contra-asset. C) expense D) revenue. The adjustment for depreciation was credited to Equipment and debited to Depreciation Expense. This would: A) overstate the assets. B) overstate net income. C) understate the assets. D) None of these are correct. Closing entries are prepared: A) to update the Capital balance. B) to clear all temporary accounts to zero. C) at the end of the accounting period. D) All of the above are correct. The journal entry to reverse the entry of a customer's nonsufficient funds check would include a: A) credit to Cash. B) debit to Cash. C) debit to Accounts Payable. D) credit to Accounts Receivable