Accounting Obj 3

Front

When Mary completes the Owner's Equity Section of a Balance Sheet, what should the end result represent?

Back

The total assets should equal total liabilities plus owner's equity.

Front

Mariah Smith, Capital and Mariah Smith, Drawing are both classified as:

Back

owner's equity

Front

What is an example of an account that has a normal debit balance? Options: Accounts Payable/Ray's Office Equipment, Insurance Expense, Ray Smith, Capital, Sales

Back

Insurance Expense

Front

What is an example of an account that has a normal credit balance? Options: Cash, Accounts Payable/Jones Supply, Prepaid Insurance, Supplies

Back

Accounts Payable/Jones Supply

Front

Sales is classified as: assets, expenses, liabilities, revenue

Back

revenue

Front

What is the effect on owner's equity when a business receives $2,000 cash from sales?

Back

Owner's equity is increased by $2,000

Front

Which is an example of an account that carries a normal credit balance? Options: Cash, Joan Brown, Drawing, Supplies, Tyler Jackson, Capital

Back

Tyler Jackson, Capital

Front

What is the effect on assets when the owner increases owner's equity by investing $1,000 in the business?

Back

Assets are increased by $1,000

Front

Rent, the telephone bill, and advertising costs are all classified as

Back

expenses

Front

Cash, office equipment, and prepaid insurance are all classified as:

Back

assets