Accounts Q2

Motor vehicles, building and machines are considered to be what to a company?

• Liabilities

• Revenue

• Assets

• Expenses

The money that is owed to a company by individuals who buy items now and agree to pay later is called ...

Assets that a company will own and use in the business for more than a year are called

When an asset increases we _____

• Debit

• Credit

When a liability increases we ___

• Debit

• Credit

The money an owner invests in the business is called ____

When an owner takes money out of the business for his/her personal use it is called

• Liabilities

• Loans

• Drawings

• Trade receivables

The accounting equation states that Assets =

• Liabilities + Capital

• Liabilities - Capital

• Liabilities + expenses

• Capital + expenses

On September 29th, Mary bought a new motor vehicle from Lifestyle Motors and paid cash. Which two accounts in Mary's books will be affected?

• Motor vehicles and bank

• Mary and Lifestyle Motors

• Lifestyle Motors and Motor Vehicles

• Motor Vehicles and cash

When capital increases we ______

• Debit

• Credit