Chapter 2 & 3 Review BUSINESS FINANCE

What is the account classification for Accounts Receivable - Jensen Printing?

• Asset

• Liability

• Owner's Equity

What account classification is Accounts Payable - All Star Sports?

• Asset

• Liability

• Owner's Equity

What account classification is Tim Richmond, Capital?

• Asset

• Liability

• Owner's Equity

What is the debit/credit rule for Asset accounts?

• Increase on Credit side,

  Decrease on Debit side

• Increase on Debit side,

  Decrease on Debit side

• Increase on Debit side,

  Decrease on Credit side

What is the debit/credit rule for Liability accounts?

• Increase on Debit side,

  Decrease on Credit side

• Increase on Credit side,

  Decrease on Debit side

• Increase on Credit side,

  Decrease on Credit side

What is the debit/credit rule for Owner's Equity accounts?

• Increase on Credit side,

  Decrease on Debit side

• Increase on Debit side,

  Decrease on the Credit side

• Increase on the Credit side,

  Decrease on the Credit side

What would happen with the following transaction?

Rent Expense was paid using cash, $900

• Debit: Rent Expense $900

  Credit: Cash $900

• Debit: Cash $900

  Credit: Rent Expense $900

• Credit: A/P - Rent $900

  Debit: Cash $900

The list of all accounts available for a specific company are called

• Account Listing

• Chart of Accounts

• Directory

• None of the above

What is the Accounting Equation?

• Assets = Expenses + Revenue

• Assets = Liabilities + Withdrawals

• Assets = Liabilities + Owner's Equity

An account called Office Supplies is classified as an:

• Liability

• Asset

• Owner's Equity