QUESTION 1 4 pa Determine whether the normal balance of each account is a debit or credit balance - Dividends - Revenues 1. Debit - Deferred/Unearned revenue 2. Credit - Accounts payable - Expenses QUESTION 2 1.5 pc When a company performs a service but does not receive cash at the time of service, revenue is credited, tell me which account will be debited? O cash accounts payable o accounts receivable dividends QUESTION 3 On January 8, Nickel Corporation purchased supplies of $800 on its account (meaning Nickel received supplies before paying cash). The journal entry to record the purchase will include: Dr. Supplies 800; Cr. Accounts Payable 800 Dr. Supplies 800; Cr. Revenue 800 Dr. Supplies expense 800; Cr. Cash 800 Dr. Cash 800; Cr. Supplies 800 QUESTION 4 Which of the following would be considered an economic event that requires an accounting transaction? the purchase of inventory on account o choosing the paint color of a wall to be red deciding that a company will choose to provide Starbucks coffee instead of Dunkin Doughnuts the hiring of a new employee QUESTION 5 After analyzing an economic transaction, a company's accounting staff records a $2,000 decrease in a particular asset. In order for the accounting equation to balance, the accounting staff must record something else. Which of the following entries could the accountant record in order to balance the accounting equation? 0 a $2,000 increase in a liability 0 a $1,000 decrease in a different asset and a $1,000 increase in a liability 0 a $2,000 increase in a liability 0 a $2,000 decrease in stockholder's equity a hit song hint... this is just a joke and not correct. A decrease in stockholder's equity of 2,000 is the correct answer...but do you know why? QUESTION 6 Under the double-entry system,... o In total dollar amounts, debits equal credits in a journal entry In total dollar amounts, debits are less than credits in a journal entry Debits have nothing to do with credits in a journal entry QUESTION 7 Collection of an account receivable: (said another way - when a company receives cash for an account receivable) o Will increase an asset and decrease a liability. Will increase a liability and decrease equity o Will increase an asset and decrease an asset Will decrease an asset and increase equity