Choose the correct option
Choose the correct answer from the given option.
1. Which of the following reflects the investment of cash by Rickie James in her sole proprietorship?
a. James, Capital increase; Cash decrease
b. Cash increase; James, Capital increase
c. James, Drawing increase; Cash decrease
d. Cash increase; James, Drawing increase
2. Which of the following reflects payment of a utilities bill from the power company?
a. Utilities Expense increase; Cash decrease
b. Utilities Payable decrease; Cash increase
c. Cash decrease; Utilities Expense decrease
d. Cash decrease; Utilities Payable increase
3. Clinton Repair Shop sold Office Supplies, at cost, to a competitor, for cash. Which of the following reflects the impact of this transaction?
a. Office Supplies increase; Cash decrease
b. Office Supplies increase; Accounts Payable increase
c. Cash increase; Office Supplies decrease
d. Accounts Payable decrease; Office Supplies decrease
4. Clinton Repair Shop returned Office Supplies purchased on account. Which of the following illustrates the impact of this transaction?
a. Cash increase; Office Supplies decrease
b. Office Supplies increase; Cash decrease
c. Office Supplies increase; Accounts Payable increase
d. Accounts Payable decrease; Office Supplies decrease
5. Clinton Repair shop paid creditors on account. Which of the following demonstrates the impact of this transaction?
a. Cash increase; Accounts Payable increase
b. Accounts Payable decrease; Cash decrease
c. Accounts Receivable increase; Cash decrease
d. Cash increase; Account Receivable decrease
6. The acquisition of Office Supplies on credit has the following impact on the affected accounts:
a. Office Supplies increase; Cash decrease
b. Cash increase; Office Supplies decrease
c. Office Supplies increase; Accounts Payable increase
d. Accounts Payable decrease; Office Supplies decrease
7. A cash payment for Rented Equipment has the following impact on the affected accounts:
a. Cash increase; Rented Equipment Expense decrease
b. Rented Equipment Expense increase; Cash decrease
c. Rented Equipment Expense increase; Accounts Payable increase
d. Accounts Payable decrease; Rented Equipment Expense decrease
8. John Tortoro, M.D. billing for the month of January amounted to $85,000. Of this total, $60,000 was received in cash and the remainder is on account. Which of the following illustrates the impact on the accounting records?
a. Cash increase $60,000; Accounts Receivable decrease $25,000; Fees Earned increase $85,000
b. Fees Earned increase $60,000; Accounts Receivable decrease $25,000; Cash increase $85,000
c. Cash increase $85,000; Fees Earned increase $85,000
d. Fees Earned increase $85,000; Accounts Receivable increase $25,000; Cash increase $60,000
9. An owner's withdrawal of cash from the company for personal use impacts which of the following accounts?
a. Wage Expense increase; Cash decrease
b. Owner's Capital decrease; Cash increase
c. Accounts Payable decrease; Cash decrease
d. Owner's Drawing increase; Cash decrease.
10. Which of the following titles reflect an asset account, an owner's equity account and an expense account respectively?
a. Equipment, Owner's Drawing, Inventory
b. Accounts Receivable, Owner's Capital, Rent Expense
c. Accounts Payable, Owner's Drawing, Salaries Payable
d. Accounts Receivable, Owner's Capital, Inventory