EXAM 1- Practice Multiple Choice. Choose the one alternative that best completes the statement or answers the question.On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $24,000; Accounts Receivable, $7650; Supplies, $1000; Equipment, $12,450; Accounts Payable, $9700. What is the amount of owner's equity as of May 31 of the current year?A) $13,150.B) $45,100.C) $54,800.D) $24,000.E) $35,400.If equity is $400,000 and liabilities are $199,000, then assets equal:A) $999,000.B) $400,000.C) $199,000.D) $201,000.E) $599,000.On April 30, Victor Services had an Accounts Receivable balance of $38,900. During the month of May, total credits to Accounts Receivable were $74,800 from customer payments. The May 31 Accounts Receivable balance was $32,000. What was the amount of credit sales during May?A) $47,200.B) $6900.C) $74,800.D) $81,700.E) $67,900.On January 1 of the current year, Jimmy's Sandwich Company reported owner's capital totaling $125,500. During the current year, total revenues were $101,000 while total expenses were $90,500. Also, during the current year Jimmy withdrew $25,000 from the company. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $201,000, the change in owner's capital during the year was:A) A decrease of $14,500.B) An increase of $14,500.C) An increase of $75,500D) A decrease of $35,500.E) An increase of $35,500.On July 1, a company paid the $4800 premium on a one-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the first year ended December 31?A) $3600.B) $1200.C) $4800.D) $2400.E) $2000.