Which of the following statements is true in regard to the Accounting Cycle?

It does not include the preparation of financial statements.

It is for unspecified time periods.

It focuses on transactions.

It is an unsystematic process.

When a company journalizes the purchase of equipment using a notes payable, which account is debited?

Accounts Receivable

Cash

Notes Payable

Accounts Payable

Equipment

When a company journalizes the purchase of inventory with cash, which account is credited?

Accounts Receivable

Cash

Inventory Expense

Inventory

Which of the following options has a normal credit balance?

Revenues

Assets

Dividends

Expenses