Lessons 1 - 4 Quiz

The Accounting Equation is -

• Assets = Owner's Equity - Liabilities

• Assets = Liabilities + Owner's Equity

• Assets = Liabilities - Owner's Equity

• Assets + Liabilities = Owner's Equity

Every business transaction only affects ONE account

• True

• False

Which of the following is an ASSET account

• Accounts Payable

• Owner's Capital

• Cash

• Service Revenue

Borrowing $10,000 from the bank (a)   Cash and ​ (b)   Loans Payable

• Increases
• Decreases

Paying $500 for Rent Expense affects which accounts?​ (a)   and​ (b)  

• Cash
• Rent Expense
• Equipment
• Accounts Payable

Amazon buys $1000 of supplies for cash. What happens?

• Assets Increase

  Liabilities Increase

• Assets Increase

  Owner's Equity Increases

• 2 Assets Increase

• 2 Liabilities Increase

Which of the following is a Liability account?

• Supplies

• Accounts Receivable

• Accounts Payable

• Advertising Expense

If the owner invests $5,000 cash into the business which accounts are affected?​ (a)   ​ (b)   ​ (c)   ​ (d)  

• Cash
• Decreases
• Owner's Capital
• Increases
• Supplies
• Equipment
• Accounts Payable

Expenses decrease Owner's Equity

• True

• False

Planet Fitness receives $2,000 for services. Which accounts change?​ (a)   ​ (b)   ​ (c)   ​ (d)  

• Cash
• Increases
• Sales
• Accounts Payable
• Supplies
• Expenses