The Expanded Accounting Equation

Amount earned by performing services or selling goods to customers

• Expenses
• Revenue
• Withdrawal
• Liability

Cost incurred in its efforts to create revenue

• Expense
•  Revenue
• Withdrawal
• Liability

Expenses DECREASE owners equity.

• True
• False

Revenue DECREASES owners equity.

• True
• False

Revenue < Expenses

• Net Income
• Net Loss

Cash or other assets removed from the business to pay personal expenses 

• Revenue
• Expense
• Withdrawal
• Liability

Owners Equity can be expanded to

• Capital - Revenue + Expenses + Withdrawal
• Capital + Revenue - Expenses - Withdrawal
• Capital + Revenue + Expenses + Withdrawal

Providing legal service for cash affects which accounts?

• Revenue, Cash
• Revenue, Accounts Receivable
• Expenses, Assets
• Expenses, Liabilities

Providing legal services on account

• Accounts Receivable, Revenue
• Cash, Revenue
• Accounts Receivable, Expense

Paid salaries expense

• cash, expense
• cash, withdrawal
• accounts receivable, expense