Multiple Questions Answers

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