What Do You Remember...#3

CPA stands for

• Certified Professional Accountant

• Chartered Professional Accountant

• Chartered Personal Accountant

• Certified Public Accountant

The basic accounting equation is:

• Assets + Owner's Equity = Liabilities

• Assets + Liabilities = Owner's Equity

• Assets = Liabilities + Owner's Equity

• All of these are correct

In what order are liabilities listed on the income statement?

• In order of liquidity

• In order of when they need to be paid

• In order from highest to lowest

• Liabilities aren't on the income statement

What is the normal balance of the Supplies account?

• Debit

• Credit

What is the normal balance of the Purchases account?

• Debit

• Credit

What is the normal balance of the Merchandise Inventory account?

• Debit

• Credit

What is the normal balance of the Accumulated Depreciation - Equipment account?

• Debit

• Credit

What is the normal balance of the Depreciation Expense account?

• Debit

• Credit

What is the normal balance of the HST Recoverable account?

• Debit

• Credit

For every transaction, there is always one DR amount and one CR amount, and both must be equal.

• True

• False