Multiple Questions Answers

1. (TCO 2) Franklin Company provided consulting services and billed the client $2,500. As a result of this event, _________. (Points : 4) 
assets remained unchanged.
assets increased by $2,500.
equity increased by $2,500.
both assets increased by $2,500 and equity increased by $2,500

2. (TCO 2) A credit is not the normal balance for which account listed below? (Points : 4) 
Common stock account
Revenue account
Liability account
Dividends account

3. (TCO 2) In the first month of operations, the total of the debit entries to the cash account amounted to $900 and the total of the credit entries to the cash account amounted to $400. The cash account has a _________ (Points : 4) 
$500 debit balance.
$900 debit balance.
$500 credit balance.
$400 credit balance.

4. (TCO 2) A trial balance would only help in detecting which one of the following errors? (Points : 4) 
A transaction that is not journalized
A journal entry that is posted twice
Offsetting errors made in recording the transaction
A transposition error when transferring the debit side of a journal entry to the ledger