Accounting Equation

An economic event that has a direct impact on the business.

• External events

• Internal events

• Business transactions

• External transactions

Increase of this account will decrease Owner's Equity

• Asset Account

• Expense Account

• Liability Account

• Income Account

Assets= Liabilities __ Owner's Equity

• +

• -

• X

• /

Accounting equation is very important tool to help in understanding and ______________ business transactions.

• measuring

• analyzing

• creating

• accounting

The accounting equation must remain in balance after each ________.

• transactions

• events

• accounts

• debit

Liabilities = Assets _____Owner's Equity

• +

• _

• x

• /

A separate record used to summarize changes in each assets, liabilities, and owner's equity.

• Accountant

• Account

• Account Title

• Count

The financial structures of a business enterprise are made up of assets, liabilities, and owner's equity.

• True

• False

• Maybe

• No answer

The business rendered service to customer on account. What is Value Received?

• Cash

• Accounts Payable

• Accounts Receivable

• Service Income

The business received cash from customer for the service rendered on account. What is Value Parted With?

• Cash

• Cancellation of Payables

• Cancellation of Receivables

• Service Income