Business and Accounting Concepts Quiz

Tyler paid $3,700 on account to the company from which equipment was purchased on credit. This transaction would

• increase assets and increase liabilities

• increase assets and increase owner's equity

• increase one asset and decrease another asset

• decrease assets and decrease liabilities

A decrease in owner's equity may result from a(n) a. withdrawal of cash from the business by the owner. b. revenue that is derived from sales of goods or services. c. investment of cash in the business by the owner. d. purchase of office supplies for cash.

• withdrawal of cash from the business by the owner

• revenue that is derived from sales of goods or services

• investment of cash in the business by the owner

• purchase of office supplies for cash

Falana received $7,000 in cash from a client for professional services rendered. This transaction would

• increase assets and increase owner's equity

• increase one asset and decrease another asset

• decrease assets and decrease liabilities

• increase assets and increase liabilities

Revenue derived from sales of goods or services results in a(n) ________ in owner's equity.

• increase

• decrease

• no change

• fluctuation

Sue Lee paid $1,200 for her employees' salaries. This transaction would:

• decrease assets and decrease liabilities.

• increase assets and decrease owner's equity.

• increase assets and increase liabilities.

• decrease assets and decrease owner's equity.

Which of the following is considered a liability?

• Cash

• Supplies

• Accounts Payable

• Equipment

What is the term for the withdrawal of cash or other assets from the business for the personal use of the owner?

• Cash

• Supplies

• Drawing

• Equipment

What is the term for the amount owed to creditors?

• Cash

• Supplies

• Accounts Payable

• Equipment

What is the term for the resources owned by a business?

• Cash

• Supplies

• Equipment

• Assets

1. Invested cash in the business, $15,000.

• Increase Cash Increase Capital

• Decrease Cash Increase Capital