The owner of an entity invests cash on the business. What would be the effects of this transaction on the components of the basic accounting equation?

a. Increase liabilities and increase owners equity

b. Increase assets and increase liabilities

c. Increase assets and increase owners equity

d. Increase assets and decrease owners equity

In 2020, BK Companys assets decreased by P30,000, and its liabilities decreased by P30,000. Its owners equity therefore is:

a. Decreased by P60,000

b. Unchanged

c. Decreased by P30,000

d. Increased by P30,000

The trial balance shows a debit balance on Supplies and Supplies Expense accounts of P0 and P15,000, respectively. If P8,000 of supplies are on hand at the end of the period, what is the adjusting entry?

a. Dr. Supplies P7,000; Cr. Supplies Expense P7,000

b. Dr. Supplies Expense P8,000; Supplies P8,000

c. Dr. Supplies Expense P7,000; Cr. Supplies P7,000

d. Dr. Supplies P8,000; Cr. Supplies Expense P8,000

The following are the major types (or categories) of adjusting entries, EXCEPT:

a. Prepaid expenses

b. Accrued expenses

c. Recognized revenues

d. Accrued revenue