1. When an entity acquires computer equipment for cash*

a. assets and owner's equity are increased

b. an asset is increased and a liability is decreased

c. one asset is increased and another is also increased

d. one asset is increased while another is decreased

2.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

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

4.The purchase of supplies for cash will*

a. increase Supplies and decrease Cash

b. Increase Supplies Expense and decrease Cash

c. Decrease Cash and Increase Accounts Payable

d. Increase Supplies Expense and Increase Accounts Payable

5.Which of the following equations is the fundamental accounting equation*

a. Assets + Liabilities = Owner's Equity

b. Assets = Liabilities + Owner's Equity

c. Assets = Liabilities - Owner's Equity

d. Assets + Owner's Equity = Liabilities

6.The company collected in full an account receivable. Considering this transaction alone*

a. Total assets will remain the same

b. Total assets will increase

c. Total assets will decrease

d. Equity will increase

7.Which of the following is a form of Revenue?*

a. a check paying a bank loan

b. a credit purchase invoice

c. credit sales to charge customers

d. a cash purchase invoice

8.All of the following affect the owner's equity account except*

a. original investment

b. payment of liability

c. additional investment

d. withdrawal by the owner

9.When a business receives cash for services performed*

a. an asset is decreased

b. the owner's equity is increased

c. the owner's equity is decreased

d. total assets remain unchanged

10.The components of the balance sheet equation are*

a. assets, income and owner's equity

b. income, expenses and profit

c. assets, liabilities and owner's equity

d. investments, withdrawals and profit