Intro to Accounting _Revision L1 & L2

Buildings and machinery are _______.

• assets

• liabilities

• owner's equity

• capital

In accounting terms, the amount of resources supplied by the owner is called ___________.

• drawings

• capital

• liabilities

• assets

The income earned from business operations is _______.

• profits

• revenue

• expense

• assets

Owner’s Equity = Assets - __________

• Creditors

• Loans

• Liabilities

• Drawings

Revenue minus expenses equals _______.

(Revenues - expenses = _______.)

• profit

• overhead

• income

• commission

Accounts Receivable (AR) are the funds that customers owe your company for products/services that have been invoiced. AR is regarded as ______ in accounting.

• capital

• equity

• asset

• liability

Accounts Payable (AP) are amounts due to vendors/suppliers for goods/services received that have not yet been paid for. AP is regarded as ________ in accounting.

• asset

• liability

• equity

• expense

An increase to Office Furniture is a

• Debit

• Credit

• Expense

• Liability

An increase to a Revenue account is a

• Debit

• Credit

• Equity

• Asset

Water and electricity utilities are regarded as _________.

• credit

• expense

• income

• asset