Answer Happy

1/2 Name ID CHAPTER 2 FIFTEEN-MINUTE QUIZ Circle the letter of the best response. 1. Which of these is (are) an example of a liability account? A. Withdrawals B. Telephone Expense C. Salary Payable D. All of the above are liabilities 2. Davie Services purchased $500 of office furniture on account. The effect of this transaction on the accounting equation is to: A. Have no effect on total assets. B. Increase assets and decrease owner's equity. C. Increase assets and increase liabilities. D. Decrease assets and decrease owner's equity. 3. Which of these statements is true? A. Decreases in assets and increases in liabilities are recorded with a debit. B. Decreases in liabilities and increases in revenues are recorded with a credit. C. Increases in assets and increases in owner's equity are recorded with a credit. D. Increases in both assets and expenses are recorded with a debit. 4. Which of these accounts has a normal credit balance? A. Capital B. Withdrawals C. Cash D. Salary Expense 5. Accounts Payable has a normal beginning balance of $18,500. During the period, purchases on account total $50,500 and payments on account total $45,600. Determine the correct ending balance in Accounts Payable. A. $23,400, debit B. $13,600, debit C. $23,400, credit D. $13,600, credit 6. The beginning Cash account balance is $98,100. During the period, cash receipts are $32,800. If ending Cash is $44,200, then cash payments must have been: A. $21,100 B. $86,700 C. $109,500 D. $175,100