Week 3 Review

The accounting equation is:

• Assets = Liabilities + Owner's Equity

• Sales-Expenses = Profit/Loss

• Liabilities = Assets + Owner's Equity

• Expenses - Sales = Profit/Loss

If I want to know what my sales are for the month of April, I would find this information by analyzing the balance sheet.

• True

• False

The balance sheet:

• Assets = Liabilities + Owner's Equity

• Shows the financial health of a hospitality and tourism operation

• Shows what a business owns and owes

• All of the answers are correct

Owner's Equity is part of the balance sheet?

• True

• False

Recognizes revenues when they are paid

• Cash Accounting

• Accrual Accounting

Records revenues even though it has not been received

• Cash Accounting

• Accrual Accounting

Nicole invested $100,000 into her business. The cash account would be:

• Debited

• Credited

Nicole paid employee wages $2,000. The wages expense would be:

• Debited

• Credited

Nicole paid employee wages $2,000 cash. The cash account would be:

• Debited

• Credited