REVIEW LESSON 1 - ELEMENTS OF SPF

Asset = Liabilities + Owner’s Equity is the governing equation of the SFP.

• True

• False

Asset is an element of the SFP that has a normal balance of credit.

• True

• False

Debit means to increase an account.

• True

• False

Credit means to decrease account.

• True

• False

Accrued Expense is a/an

• Asset

• Liability

• Equity

Capital is a/an

• Asset

• Liability

• Equity

The account reports the balances of bank savings and checking account as well as bills, coins and checks on hand.

• Account Receivable

• Note Receivable

• Cash

• Account Receivable

Obligation to pay documented in a promissory note.

• Accounts Payable

• Notes Payable

• Accounts Receivable

• Notes Receivable

Advance payments made by the customers while goods and services are not yet delivered to the customer.

• Prepaid Expense

• Accounts Payable

• Unearned Income

• Notes Receivable

Long-term assets that have no tangible properties.

• Equipment

• Supplies

• Land

• Intangible assets