Mary invested cash in her new business. What effect will this have? O A. Increase an asset and increase a Liability O B. Decrease an asset and decrease Owner's Equity O C. Decrease an asset and increase a Liability OD. Increase an asset and increase Owner's Equity Logan's Motor Sports buys $47,000 of supplies for cash. Which of the following is a true statement? O A. Total Liabilities are unchanged. OB. Total Assets are unchanged. O C. Total Assets decrease. OD. Total Assets increase. Pat purchased $8,000 of new electronic equipment for her BJ Company on open account. The effect on the basic accounting equation was to: A. decrease Cash $8,000 and increase Equipment $8,000. O B. increase Cash $8,000 and increase Equipment $8,000. O C. decrease Cash $8,000 and increase Accounts Payable $8,000. OD. increase Equipment $8,000 and increase Accounts Payable $8,000. The payment of accounts payable would: O A. increase Assets and decrease Liabilities. O B. decrease Assets and increase Liabilities. O C. decrease both Assets and Liabilities. OD. increase both Assets and Liabilities. If Or Fashioned Toys' Revenues are less than its Expenses during the accounting period: O A. the business will incur a net loss. B. net income causes Liabilities to decrease. O C. owner's withdrawals increase net income. OD. owner's withdrawals increase Owner's Equity The four parts of Owner's Equity include Capital, Withdrawals, Revenues, and Expenses. True O False Revenue and cash will always equal. O True O False The statement of Owner's Equity shows the change in Revenue. O True O False Expenses: O A. are costs the company incurs in carrying on operations. O B. are a subdivision of Owner's Equity. OC. record personal expenses not related to the business. OD. Both A and B are correct. Accounting services were provided to a customer for cash. How would this affect the accounting equation? O A. Accounts Payable decreased and Capital decreased. O B. Cash and Accounts Receivable increase. O C. Cash and Revenue increase. OD. None of the above are correct. Victoria received $1,000 from customers in partial payment for accounting services performed previously. The recording of this transaction would: O A. decrease Accounts Receivable and increase Victoria's Capital $1,000 O B. increase Cash and decrease Accounts Receivable $1,000. OC. increase Cash and Victoria's Capital $1,000. OD. increase Cash and increase Accounts Receivable $1,000. The income statement is completed before the statement of Owners' Equity O True O False