What is the effect of the following business activity on the element indicated? Received inventory worth $895 from your supplier, purchased with terms 3/5, n/20. --- Revenue

Question 1 options:

1)

decrease

2)

no effect

3)	increase to one and decrease to another

4)

increase

Question 2

What is the effect of the following business activity on the element indicated? Paid for $1,200 of inventory you purchased 1/10, n/30, on Feb. 12. It is Feb. 22. --- Liabilities

Question 2 options:

1)

decrease

2)

increase

3)

no effect

4)	increase to one and decrease to another

Question 3

What is the effect of the following business activity on the element indicated? Pay $95 in interest on a loan. The interest was appropriately accrued at the end of last year. --- Expenses

Question 3 options:

1)

increase

2)

decrease

3)

no effect

4)	increase to one and decrease to another

Question 4

What is the effect of the following business activity on the element indicated? Provided 1 month of services to a customer who paid $1,500 in advance for 6 months of services. --- Assets

Question 4 options:

1)

decrease

2)	increase to one and decrease to another

3)

no effect

4)

increase

Question 5

What is the effect of the following business activity on the element indicated? A month-end entry is made for a 6%, 1 year, Bank Loan Payable of $25,000, taken out Nov. 1. --- Assets

Question 5 options:

1)

no effect

2)

decrease

3)	increase to one and decrease to another

4)

increase

Question 6

What is the effect of the following business activity on the element indicated? On Saturday you pay an employee for 37.5 hours of work that she performed. Hourly rate of $12. --- Assets

Question 6 options:

1)

increase

2)

no effect

3)	increase to one and decrease to another

4)

decrease