Accounting Equation

Furniture is regarded as

• Assett

• Fixed Assett

• Liability

• Current Liability

Owners equity just refer to the Capital of the owner

• True

• False

The Accounting Equation must always be in balance? 

• True
• False

Purchases from a supplier on credit is a liability.

• True
• False

For accounting purpose, the proprietor is a separate and distinct entity from the business.

• True
• False

The owner invests personal cash in business.

• Asset (I)
• Liabilties (I)
• Equity (NE)

The company receives cash from a bank loan 

• Assets (I)
• Liabilities (D)
• Equity (D)

The company repays the bank that had lent money

• Assets (I)
• Liabilities (D)
• Equity (D)

Assets 

• Anything owed by the company
• Anything owned of value by the company

Cost incurred in its efforts to create revenue

• Expense
•  Revenue
• Withdrawal
• Liability