Exam 1: Asset, Liability, Owners Equity, Revenue, and Expense Accounts

Palmer Hand Clinic has the following accounts and balances: Cash, $2,350 Accounts Receivable, $280 Professional Equipment, $1,200 Office Equipment, $6,700 Accounts Payable, $4,380 P.Palmer, Capital, $2,000 Income from Services, $6,000 Rent Expense, $1,850 What is the amount of liabilities?

List and explain the four items under the umbrella of owner's equity, including whether it increases or decreases overall equity.

The purchase of an asset for cash will

Which of the following is not considered an account?

When a business pays a creditor on account,

Over a period of time, if total assets increase by $27,000 and total liabilities increase by $7,000, then owner's equity will be increased by

Capital represents the owner's investment, or equity, in a business.

Clean and Fresh Laundromat has assets of $120,000 and liabilities of $35,000. Determine the amount of owner's equity.

Amounts owed by a business are referred to as

The deposit of cash by the owner in the name of the business would involve

Match the terms below with the correct definitions. -One to whom money is owed

What is the fundamental accounting equation, including examples of each item of the equation?

The _____________ is the official list of accounts for the business.

Business transactions are expressed in terms of money.

When a company pays salaries to an assistant,

Match the terms below with the correct definitions. -Company's asset account from which bills are paid

An owner can invest cash or other assets of value in the business.

A one-owner business is called a

Which of the following transactions does not include an increase to expenses?

A withdrawal by the owner is recorded as a deduction from assets and an increase in expenses.