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

Magna Company paid $2,400 for a 6-month liability insurance policy. At the time of payment, this transaction should be recorded as

A one-owner business is called a

Professional Fees is a(n)

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

In the fundamental accounting equation, assets are added to liabilities.

The effect of revenue on the fundamental accounting equation is a(n)

Jerry Frost invested equipment in his business having a fair market value of $23,500. What are the effects on the fundamental accounting equation?

Assets are things of value owned by a business entity.

T. Richtor established her own business, called Richtor's Self-Storage. Use the account headings presented below in the expanded accounting equation to record the monthly transactions. Instructions:

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

Both sides of the fundamental accounting equation must always be equal.

Match the terms below with the correct definitions. -Assets minus liabilities

Match the terms below with the correct definitions. -Costs that relate to the earning of revenue

Bendada deposited $25,000 in a bank account in the name of the business. Which of the following is true in regards to the fundamental accounting equation?

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

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?

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 assets?

Equipment is listed as an asset because it is used up in a relatively long period of time.

The liability created when supplies are bought on account is called an account payable.

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