3rd Form TO BE RETURNED Section II: Multiple Choice. Read each question carefully and select the best answer by circling the letter of your choice. (1 pt. each) 11. Which of the following statements is correct? a) Sold goods on credit b) J. Charles lends us $1,000 in cash. c) We paid a creditor by cheque. d) Bought goods paying by cheque. Effect upon Assets Liabilities - Stock + Creditors + Cash - Bank Bank - Debtors - Creditors 12. Which of the following are incorrect? Accounts (I) Liabilities + Loan from Charles Entry in the account To record An increase Debit A decrease Credit (II) Assets An increase Debit A decrease Credit (III) Capital An increase Debit A decrease Credit a) (I) and (II) (b) (II) and (III) c) (I) and (III) d) (I) only