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- Multiple ChoicePlease save your changes before editing any questions.
Payments for advertising, equipment repairs, utilities, and rent are expense transactions.
True
False
- Multiple ChoicePlease save your changes before editing any questions.
When an owner withdraws cash from the business, the transaction affects both assets and owner's equity.
True
False
- Multiple ChoicePlease save your changes before editing any questions.
After each transaction, the accounting equation must remain in balance.
True
False
- Multiple ChoicePlease save your changes before editing any questions.
A transaction for the sale of goods or services results in a decrease in owner's equity.
True
False
- Multiple ChoicePlease save your changes before editing any questions.
The accounting equation is most often stated as: Assets+Liabilities=Owner's Equity
True
False
- Multiple ChoicePlease save your changes before editing any questions.
When two asset accounts are changed in a transaction, there must be an increase and a decrease.
True
False
- Multiple ChoicePlease save your changes before editing any questions.
When items are bought and paid for at a future date, another way to state this is to say these items are bought on account.
True
False
- Multiple ChoicePlease save your changes before editing any questions.
An expense is a decrease in owner's equity resulting from the operation of a business.
True
False
- Multiple ChoicePlease save your changes before editing any questions.
Paid cash for telephone bill $185.00.
Decrease cash, increase owner's equity
Decrease cash, decrease owner's equity
Increase cash, increase accounts payable
Decrease cash, decrease accounts payable
- Multiple ChoicePlease save your changes before editing any questions.
Paid cash for supplies $50
Decrease cash, increase owner's equity
Increase cash, increase supplies
Decrease cash, decrease supplies
Decrease cash, increase supplies
- Multiple ChoicePlease save your changes before editing any questions.
Bought supplies on account from Sugarland $1500
Decrease cash, increase supplies
Increase supplies, Increase Accounts Payable, Sugarland
Increase supplies, Decrease Accounts Payable, Sugarland
Increase Supplies, Decrease Owner's Equity
- Multiple ChoicePlease save your changes before editing any questions.
Boyd Inc. bought services on Account from us $200
Increase cash, increase owner's equity
Increase cash, Decrease owner's equity
Increase Accounts Receivable, Boyd Inc., Increase Owner's Equity
Increase Account Payable, Increase Owner's Equity
- Multiple ChoicePlease save your changes before editing any questions.
Payed cash on account to Sugarland $300
Decrease cash, decrease owner's equity
Decrease cash, decrease Accounts payable Sugarland
Decrease cash, increase Accounts payable Sugarland
Increase cash, increase owner's equity
- Multiple ChoicePlease save your changes before editing any questions.
Received cash on account from Boyd Inc.
Increase cash, increase owner's equity
Increase cash, decrease accounts receivable, Boyd Inc.
Decrease cash, decrease accounts receivable, Boyd Inc.
Increase cash, decrease accounts payable
- Multiple ChoicePlease save your changes before editing any questions.
Received cash from sales $400
Increase cash, increase owner's equity (sales)
Increase cash, increase supplies
Increase cash, increase accounts receivable, increase owner's equity
Decrease cash, decrease owner's equity (sales)
- Multiple ChoicePlease save your changes before editing any questions.
Paid cash to owner for personal use
Decrease cash, increase accounts payable
Increase cash, increase owner's equity (expense)
Decrease cash, decrease owner's equity (withdrawal)
Don't record it
- Multiple ChoicePlease save your changes before editing any questions.
Paid cash for insurance $500
Decrease cash, increase owner's equity
Increase cash, increase insurance
Decrease cash, decrease insurance
Decrease cash, increase insurance
- Multiple ChoicePlease save your changes before editing any questions.
Received cash from owner as an investment $4000
Increase cash, increase owner's equity (capital)
Increase cash, increase liabilities
Increase cash, increase accounts receivable, increase owner's equity
Decrease cash, decrease owner's equity (capital)
- Multiple ChoicePlease save your changes before editing any questions.
Anything of value a company owns
Owner's Equity
Assets
Liabilities
Transactions
- Multiple ChoicePlease save your changes before editing any questions.
Money a company owes to a third party
Owner's Equity
Assets
Liabilities
Accounts
- Multiple ChoicePlease save your changes before editing any questions.
If you are dealing with two accounts on opposite sides of the equal sign
If you increase on one side, you need to do the opposite on the other side
If you increase on one side, you need to do the same on the other side
- Multiple ChoicePlease save your changes before editing any questions.
Another word for revenue is
Cash
Sales
Profit