Acc 111

All the following account are assets except:

• 1. Account Receivable

• 1. Equipment

• 1. Account Payable

• 1. Land

Notes payable are classified as:

• 1. Assets

• 1. Owner's equity

• 1. Expense

• 1. Liabilities

If the company has the following balances BD12,000 cash, supplies BD3,000, furniture BD5,000 and account payable BD4,000, then the owner's equity will equal:

• 1. BD16,000

• 2. BD20.000

• 2. BD15,000

• BD24,000

The Basic Accounting Equation

• ASSETS = LIABILITIES + OWNER’S EQUITY

• LIABILITIES = ASSETS + OWNER’S EQUITY

• OWNER’S EQUITY = ASSETS+LIABILITIES

• ASSETS = LIABILITIES - OWNER’S EQUITY

Assets Classification

• Account Payable

• Cash

• Notes payable

• Service revenue