Question 15

The purchase of $500 of office supplies on account will:

		Increase assets and increase stockholders equity by $500
		Increase assets and decrease liabilities by $500
		Increase assets and decrease stockholders equity by $500
		Increase assets and increase liabilities by $500

If assets increase by $100 and liabilities decrease by $30, stockholders equity must:

		Increase by $70
		Increase by $130
		Decrease by $70
		Decrease by $130

26.

Which of the following groups of accounts normally have a credit balance?

		assets and liabilities
		equity and assets
		liabilities and stockholders' equity
		assets and expenses

36.

A company receives $1,000 for services previously billed to one of its customers. Which of the following entries would be recorded if the company uses accrual basis accounting?

		Debit cash, $1,000 and Credit account receivable, $1,000
		Debit Salary expense, $1,000 and Credit cash, $1,000
		Debit Cash, $1,000 and Credit Service revenue, $1,000
		Debit Supplies, $1,000 and Credit Cash, $1,000