Accounting Chapter 1

Amount owed by a business

• liability
• asset
• capital
• account

Assets taken out of a business for the owner's personal use

• capital
• withdrawals
• equities
• revenue

A business owned by one person

• service business
• revenue
• expense
• proprietorship

An increase in owner's equity resulting from the operation of a business

• asset
• expense
• withdrawl
• revenue

When cash is received, the cash account does what?

• Increases
• Decreases
• Stays the same
• There is no cash account

When a company pays a bill using cash, the cash account does what?

• Increases
• Decreases
• Stays the same
• There is no cash account

Received cash from owner as investment

• Increase cash & capital
• Decrease cash & capital
• Increase assets & liabilities
• Decreases assets & liabilities

Classify Prepaid Insurance

• Asset

• Liability

• Owner's Equity

Classify Accounts Payable/XYZ Company

• Asset

• Liability

• Owner's Equity

Classify Prepaid Insurance

• Asset

• Liability

• Owner's Equity