Accounting Semester 1 Review Final Exam

Front

The accounting equation is most often stated as Assets + Liabilities = Owner's Equity.

Back

FALSE

Front

Is the following statement true or false? Accounting is defined as planning, recording, analyzing and interpreting financial information

Back

TRUE

Front

The accounting equation is most often stated as Assets + Liabilities = Owner's Equity.

Back

FALSE

Front

After each transaction, the accounting equation must remain in balance.

Back

TRUE

Front

When items are bought and paid for at a future date, another way to state this is to say these items are bought on account.

Back

TRUE

Front

Keeping separate the financial records for a business and for its owners personal belongings is an application of the Business Entity accounting concept.

Back

TRUE

Front

Withdrawals are assets taken out of a business for the owners personal use.

Back

TRUE

Front

When an owner withdraws cash from the business, the transaction affects both assets and owners equity.

Back

TRUE

Front

Each liability account has a normal debit balance.

Back

FALSE

Front

Asset accounts decrease on the credit side. True or False?

Back

TRUE