Accounting Equation

Q. Assets = Liabilities + Owner,s Equity

If Assets 4500

Liabilities 230

Owner,s Equity is

• 4500

• 4270

• 4320

Assets = Liabilities + owner,s Equity

if the Assets 5320

Liabilities -??????

Owner,s Equity 1320

• 5320

• 320

• 4000

Q - 3 Assets + Liabilities + Owner,s Equity

Assets -??????

Liabilities 1000

Owner,s Equity 3270

• 3000

• 4270

• 1000

An Amount Owed by Business

• Assets

• Revenue

• Owner,s Equity

• Liabilities

What you call

Assets + liabilities + owner,s Equity

• Accounting Statement

• Accounting Equation

• Accounting Records

A business activity that changes assets, liabilities, or owners equity

• Account Balance

• Inventory

• Income

• Transaction

If the owner invests his/her own money in business...

• Assets Increase and owner,s Equity increase

• assets Decrease and owner,s Equity increase

• Assets increase and owner,s equity decrease

• Assets decrease and owner,s Equity decrease

The accounting equation is

• Liabilities = Assets + owner,s Equity

• Liabilities + owner,s Equity = Assets

• Equity = Liabilities + Assets

• Assets + owners Equity = Liabilities

The Accounting Equation must always be in balance? 

• True

• False

Supplies Purchased on account that will be paid later time is a liabilities?

• False

• True