Accounting Equation

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

• True

• False

Organized summaries of a business’s financial activities

• Accounting Records

• Account Balance

• Accounting System

When two asset accounts are changed in a transaction, there must be an ____________ and a _____________

• Increase, increase

• Decrease, Decrease

• Increase, Decrease

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

• Credit

• Account

• Payable

• Later

A business activity that changes the accounting equation

• Ethics

• Service Business

• Transaction

A business that does something for someone is considered what type of business?

• Great

• Service

• Product

• Manufacturer

Financial right to the assets of the business

• Equities

• Money

• Cash

If a business uses cash to buy supplies what accounts are affected?

• Cash and Liabilities

• Cash and Supplies

• Assets and Liabilities

If a buys supplies on account what is being affected?

• Cash and Supplies

• Supplies and Accounts Payable

• Supplies and Liabilities

What does GAAP Stand for?

• General Accepted Accounting Principles

• General Accounting Applied Principles

• Generated Accounting Applied Prompts