Accounting Ch 3 Quiz

Cash 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

If a business buys a new desk with cash, the desk is considered a(n)...

• Liability
• Asset
• Owner's Equity

to put money to use, by purchase or expense, in something offering potential profit.

• Expense
• Liability
• Investment
• Buildings

"Joe Brown, Capital" is an account classified as...

• Assets
• Liabilities
• Owner's Equity

"Accounts Receivable" is an account classified under...

• Asset
• Liabilities
• Owner's Equity

Someone owes YOU (the business) money. A customer purchased something "on account."

• Accounts Receivable
• Accounts Payable
• Capital
• Office Equipment

YOU (the business) owe someone money. You purchased something "on account."

• Accounts payable
• Accounts Receivable
• Capital
• Assets

Every time a business makes a profit, owner's equity is impacted. 

• True
• False

The owner deposited $30,000 into the business checking account. Which accounts are affected?

• Cash in bank & Capital
• Accounts receivable & Capital
• Accounts payable & Cash in bank
• Cash in bank & Furniture