Accounting Titles and Accounting Equation

The company purchases land by paying half in cash and signing a note payable for the other half..What is the effect on accounting equation?

• Inc. in Assets (Land), Dec.In Assets (Cash)  I  Inc. in Liability (NP)
• Inc. in Assets (Land), Dec.In Assets (Cash)  I  Inc. in Liability (NP)
• Inc. in Assets (Land)  I  Inc. in Liability (NP)

In what accounting element can we classify INVENTORIES?

• Asset
• Liabilities
• Equity

If the total liabilities is P 15, 000 and the total assets is P 23,000, what is the total equity using the accounting equation?

• P 8,001
• P 8,000
• P 8,000.01

The owner invests personal cash in the business. What is the effect on accounting equation?

• Inc. in Assets  I  Inc. in Equity
• Inc. in Liabilities  I  Inc. in Assets
• Dec. in Assets  I  Inc. in Equity

The company repays the bank that had lent money to the company. What is the effect on accounting equation?

• Inc. in Assets  I  Dec. in Equity
• Dec. in Assets  I  Dec. in Liabilities
• Dec. in Liabilities  I  Dec. in Liabilities

In what accounting element can we classify SALARY EXPENSE?

• Asset
• Liabilities
• Equity

The company purchases a significant amount of supplies on credit. What is the effect on accounting equation?

• Inc. in Assets  I  Dec. in Equity
• Inc. in Assets  Inc. in Liabilities
• Dec. in Assets  I  Inc. in Liabilities

What does the accounting equation form the basis for?

• Single entry bookkeeping
• Cash books
• Double entry bookkeeping

What account type is the cash account?

• Liability
• Asset
• Equity

What account type is the rent expense account?

• Revenue
• Asset
• Expense