Question 5 (2 points)

Supplies of value $ 4000 purchased for cash. Impact of this transaction on accounting equation would be

a

Cash decreases by $ 4000 on assets side and Supplies increases by $ 4000 on assets side

b

Cash decreases by $ 4000 on assets side and owners' increases by $ 4000 on liabilities side

c

no account is impacted

d

Cash decreases by $ 4000 on assets side and Accounts payable decreases by $ 4000 on liabilities side

Question 6 (2 points)

Business received $ 1000 from a customer to whom the goods worth $ 2000 were sold on credit in the past. What would be the impact of this transaction on Accounting Equation.

a

Assets decreased by $ 1000 and Liabilities increased by $ 1000

b

Assets increased by $ 1000 and Liabilities decreased by $ 1000

c

No impact on overall equation but individual asset balances are impacted

d

Assets increased by $ 1000 and Equity Increased by $ 1000

Question 7 (2 points)

Journal Entry for withdrawal of $ 5000 cash from business by owner is.....

a

Cash A/c Debit and Owner's Equity A/c Credit

b

Owner's Equity A/c Debit and Cash A/c Credit

c

Owner's Equity A/c Debit and Liability A/c Credit

d

Liability Account Credit and Owner's Equity Credit

Question 8 (1 point)

If Liabilities are $ 15,000 and equity is $ - 5,000 (negative) then Assets will be ___________? (use accounting equation)

a

$ 20,000

b

$ 5,000

c

$ 15,000

d

$ 10,000