ACC 290 Chapter 2 Test Q-3

For each transaction, indicate whether the balance of total assets, liabilities and owner’s equity (OE) increased, decreased

or did not change.

Transaction

#

Description Assets Liabilities Owner’s Equity

1 Paid salaries for current month.

2 Purchased equipment on credit.

3 Purchased furniture using cash.

4 Additional investment into the business.

5  Received immediate payment for services

provided.

6 Made partial payment for equipment purchased

on credit.

7 Billed customers for services performed.

8 Withdrew cash for personal use.

9 Received payment from customers already billed.

10 Received bills for current utilities to be paid next

month.