Question:
1. Performing a service for $500 cash and $700 on account would include a:
a. debit to cash for $1,200
b. debit to service revenue for $1,200
c. credit to service revenue for $500
d. debit to accounts receivable for $700
2. The normal balance of cash is a _____ because it is a(n) _____ account.
a. debit, expense
b. credit, asset
c. debit, asset
d. credit, revenue
3. The normal balance of accounts payable is a _____ because it is a(n) _____ account.
a. credit, liability
b. credit, revenue
c. credit, owner's equity
d. credit, asset
4. An owner investment of a building, valued at $200,000, with a $55,000 outstanding mortgage into an entity would:
a. increase owner's equity $145,000
b. increase total assets $55,000
c. decrease liabilities $145,000
d. increase owner's equity $200,000