Question1: Which of the following reflects payment of a utilities bill from the power company?
[A] Cash decrease; Utilities Expense decrease
[B] Cash decrease; Utilities Payable increase
[C] Utilities Expense increase; Cash decrease
[D] Utilities Payable decrease; Cash increase
Question2: Clinton Repair Shop returned Office Supplies purchased on account. Which of the following illustrates the impact of this transaction?
[A] Office Supplies increase; Accounts Payable increase
[B] Accounts Payable decrease; Office Supplies decrease
[C] Cash increase; Office Supplies decrease
[D] Office Supplies increase; Cash decrease
Question3: Clinton Repair shop paid creditors on account. Which of the following demonstrates the impact of this transaction?
[A] Accounts Receivable increase; Cash decrease
[B] Cash increase; Account Receivable decrease
[C] Cash increase; Accounts Payable increase
[D] Accounts Payable decrease; Cash decrease
Question4: 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 $85,000; Fees Earned increase $85,000
[B] Fees Earned increase $85,000; Accounts Receivable increase $25,000; Cash increase $60,000
[C] Cash increase $60,000; Accounts Receivable decrease $25,000; Fees Earned increase $85,000
[D] Fees Earned increase $60,000; Accounts Receivable decrease $25,000; Cash increase $85,000
Question5: An owner’s withdrawal of cash from the company for personal use impacts which of the following accounts?
[A] Accounts Payable decrease; Cash decrease
[B] Owner’s drawing increase; Cash decrease
[C] Wage Expense increase; Cash decrease
[D] Owner’s Capital decrease; Cash increase