Question 17 (2 points)

When the business pays cash to the vendor for goods purchased on credit in the past, then impact on accounting equation would be

a.Assets decreases and Equity decreases

b.Assets decreases and Liability Decreases

c.Assets increases and liability increases

d.no impact on overall accounting equation

Question 18 (1 point)

When buisnesss receives cash, cash account will be credited in Jounral Entry.

a.True

b. False

Question 19 (2 points)

Journal entry for expenses paid in advance is?

a.Debit Expenses and Credit Prepaid Expenses

b.Debit Prepaid Expenses and Credit Expenses

c.Debit Prepaid Expenses and Credit Cash

d.Debit Cash and Credit Prepaid Expenses

Question 20 (1 point)

Advance received from vendor would be .......................

a.Asset

b.Equity

c.Liability

d.Revenue