Question

1. ______ Borrowing money from a bank
a. Increases assets and decreases liabilities
b. Increases liabilities and decreases assets
c. Decreases assets and decreases liabilities
d. Increases assets and increases liabilities

2. ______ Which of the following accounts would normally NOT have acredit balance? a. Accounts Payable
b. Cost of Goods Sold
c. Sales Revenue
d. Retained Earnings

3. ______ When previously declared dividends are paid,
a. Assets are decreased and liabilities are decreased
b. Assets are increased and owners' equity is increased
c. Assets are decreased and owners' equity is increased
d. Assets are decreased and owners' equity is decreased


4. 10. ______ Given the following data, what is the amount in thesupplies account to be shown as an asset on the balance sheet atthe end of the period?

Supplies (beginning of period) $500
Supplies purchased (during period) 425
Supplies used (during period) 375

a. $350
b. $550
c. $375
d. $425