The purchase of an asset on account will
A) Increase total liabilities and decrease total assets.
B) Have no effect on total assets or total liabilities.
C) Increase total assets and increase owner’s equity.
D) Increase total assets and decrease owner’s equity.
____ 2. Amounts owed by a business are referred to as
A) Assets
B) Equities
C) Liabilities
D) Capital
E) Expenses
____ 3. When an owner deposits cash in an account in
the name of the business, it is an increase to
A) Cash and Accounts Receivable
B) Cash and Withdrawals
C) Cash and Capital
D) Cash and Accounts Payable
E) Cash and Rent Expense