Question Details

1.	 Which of the following accounts is decreased with a credit?
a.	Advertising Fees Earned
b.	Insurance Expense
c.	Owner's Capital
d.	Unearned Revenue



	2.	When collection is made on Accounts Receivable,
a.	owner's equity increases.
b.	total assets decrease.
c.	total assets remain the same.
d.	total assets increase.



	3.	If office equipment is sold at cost in exchange for a promissory note,
a.	total liabilities increase.
b.	total liabilities and owner's equity decrease.
c.	total assets decrease.
d.	total assets remain the same.



	4.	The withdrawal of cash by the owner will
a.	decrease net income..
b.	increase liabilities.
c.	not affect total assets
d.	decrease owner's equity.


	5.	Payment on a portion of Accounts Payable will
a.	not affect owner's equity.
b.	decrease net income.
c.	increase total liabilities.
d.	not affect total assets.