Question1: Clinton Repair Shop sold Office Supplies, at cost, to a competitor, for cash. Which of the following reflects the impact of this transaction?
[A] Cash increase; Office Supplies decrease
[B] Accounts Payable decrease; Office Supplies decrease
[C] Office Supplies increase; Cash decrease
[D] Office Supplies increase; Accounts Payable increase
[E] Accounts Payable decrease; Office Supplies decrease
Question2: A cash payment for Rented Equipment has the following impact on the affected accounts:
[A] Rented Equipment Expense increase; Accounts Payable increase
[B] Accounts Payable decrease; Rented Equipment Expense decrease
[C] Cash increase; Rented Equipment Expense decrease
[D] Rented Equipment Expense increase; Cash decrease
Question3: Which of the following titles reflect an asset account, an owner’s equity account and an expense account respectively?
[A] Accounts Payable, Owner’s Drawing, Salaries Payable
[B] Accounts Receivable, Owner’s Capital, Inventory
[C] Equipment, Owner’s Drawing, Inventory
[D] Accounts Receivable, Owner’s Capital, Rent Expense
Question4: Which of the following reflects the investment of cash by Rickie James in her sole proprietorship?
[A] James, Drawing increase; Cash decrease
[B] Cash increase; James, Drawing increase
[C] James, Capital increase; Cash decrease
[D] Cash increase; James, Capital increase