PLEASE SELECT THE CORRECT ANSWER AND PROVIDE A DETAILED EXPLANATION FOR THE ANSWER YOU CHOOSE. EXPLAIN, EXPLAIN, EXPLAIN

1. John Culmer owns and operates a convenience store. He pays on average $500 for electricity per month. How should this payment be classified in the books of account? A asset B. expense C. liability D. revenue [1] 2. Which of the following is a Fixed Asset? A. cash in bank B. flatbed truck C. insurance (paid one month early) D. stock [1] 3. The opening account balance of the fixed asset 'Office Equipment" always shows the original amount paid for its ownership. Which accounting concept is being applied? A. Business Entity B Consistency C. Historical Cost D. Objectivity [1]