ACC 290 Chapter 1 Test Q-3

Indicate whether each transaction will increase, decrease or have no change to the cash balance and net worth.

Transaction Cash Balance Net Worth

Deposit salary Increase Increase

1) Received the phone bill, due next month 

2) Prepay a magazine subscription for a year 

3) Received a student loan 

4) Receive cash from a part-time job 

5) Reduce the principal portion of a loan

6) Pay interest on the credit card balance 

7) Received an expensive stereo as a gift from your family 

8) Pay for gas and food with cash