Accounting I Chap 1

A liability (Accounts Payable) is money the business owes to someone

• True
• False

An Expense such as Advertising Expense or Utilities Expense will Decrease the Owner's Equity.

• True
• False

Assets taken out of the business for the owner's personal use are called withdrawls

• True
• False

Accounts Receivable, Oakdale School is classified as a(n)

• Asset
• Liability
• Owner's Equity
• Revenue

The Accounting Equation is

• Assets = Owner's Equity
• Assets + Liabilities = Owner's Equity
• Assets - Liabilities = Owner's Equity
• Assets = Liabilities + Owner's Equity

Kim Park, Drawing is classified as a(n)

• Asset
• Liability
• Owner's Equity
• Expense

Cash is classified as a(n)

• Asset
• Liability
• Owner's Equity
• Revenue

What are Equities?

• Financial rights to the assets of a business.
• Financial rights to the assets of investments.
• Financial rights to the profits during the first year a business is operating.
• None of these.

What is a Properietorship?

• A business owned by one person.
• A business owned by two people.
• A business owned by close friends.
• A business owned by two or more other businesses.

Business Ethics is the use of ethics in making business decisions.

• True
• False