When a company incurs $2,000 for a marketing campaign in the current period on account, the transaction would be recorded as:

	a.	Accounts Payable 2,000 Advertising Expense 2,000
	b.	Marketing Expense 2,000 Cash 2,000
	c.	Marketing Expense 2,000 Accounts Payable 2,000
	d.	Cash 2,000 Marketing Expense 2,000
	e.	Marketing Expense 2,000 Accounts Payable 2,000

A company has the following transactions:

1. Repay cash from bank borrowing.

2. Pay salaries for the current period.

3. Receive cash in advance from customers for services to be provided later.

4. Incur utlities expense for the current period.

5. Adjust the prepaid rent account for expired amounts in the current period.

How many of these transactions result in an expense being reported in the current period?

	a.	3
	b.	1
	c.	5
	d.	4
	e.	2

Suppose a company provides services to customers in the current period but does not collect cash from those customers. How will the basic accounting equation be affected in the current year?

	a.	No effect in the current year
	b.	Expenses decrease
	c.	Liabilities decrease
	d.	Stockholders equity increases
	e.	Assets decrease

Which of the following statements regarding liquidity ratios is false?

	a.	All of the other statements are true.
	b.	As a rule of thumb, a current ratio of 1 or higher often reflects an acceptable level of liquidity.
	c.	Providing services to customers for cash improves liquidity.
	d.	A high current ratio generally indicates the ability to pay current liabilities on a timely basis.
	e.	The purchase of a building for cash has no effect on liquidity.

if you could please post your work/reasoning, that'd be great! thanks!