Beg Acct 2.1 and Ch 1

What is the Accounting Equation?

• L= A + OE

• A= L + OE

• L - OE= A

• K + F + C= YUM

What account is used for "bought services on account?"

• Accounts Payable

• Accounts Receivable

• Cash

• Supplies

What type of transactions increase Owner's Equity?

• withdrawals and expenses

• paying rent and paying utilities

• buying supplies on account

• sales and investment

T or F: The accounting equation doesn't always have to balance

• False

• True

• It depends on the transaction

The left side of a T-Account is known as

• debit

• liability

• credit

• normal balance

Assets have a normal balance on the ______ side of a T-Account

• right

• middle

• left

• it depends on the transaction

Liabilities have the increase side on the the _____ side of a T Account.

• right

• left

• top

• bottom

T or F: All Assets have the same normal balance.

• True

• False

• Maybe

• Maybe not

Capital has the normal balance and increase side on what side of a T-Account?

• left

• right

• not right

• it depends

The normal balance is always on the _____ side of a T-Account

• right

• left

• increase

• decrease