Question1: Music Land sold goods for $4,800 on credit. This transaction:
[A] Increased accounts receivable and owners' equity
[B] Increased cash and owners' equity
[C] Increased accounts payable and owners' equity
[D] Increased accounts receivable and cash
Question2: Amounts owed by customers for goods sold on credit are called:
[A] Cost of goods sold
[B] Inventory
[C] Accounts receivable
[D] Accounts payable
Question3: Which of the following transactions decreases assets and owners' equity?
[A] Use supplies
[B] Repay amount borrowed from a bank
[C] Purchase supplies for cash
[D] Pay suppliers for goods purchased on credit
Question4: Lakeside Realty used supplies costing $50. This transaction:
[A] Increased supplies expense and decreased cash
[B] Increased supplies expense and decreased supplies
[C] Decreased supplies and decreased cash
[D] Increased inventory and decreased cash