Changes That Affect the Accounting Equation

A business owned by 1 person.

• Corporation
• Partnership
• Proprietorship

Keeping personal and business records separate is an application of business entity.

• true
• false

The accounting equation is:

• Assets = Liabilities
• Assets = Liabilities + Owner’s Equity
• Assets + Liabilities = Owner’s Equity

Paying for supplies is:

• Revenue
• Expense
• None of the above

When two asset accounts are changed in a transaction, there must be an + & a -.

• true
• false

An owner taking assets for personal use is a(n):

• Revenue
• Expense
• Withdrawal

Anything of value that is owned:

• Assets
• Liabilities
• Owner's Equity

A business that performs an activity for a fee.

• Service business
• Merchandising business
• Manufacturing business

Any amount owed by a business.

• Assets
• Liabilities
• Owner's Equity

Receiving cash from a sale is a(n):

• Revenue
• Expense
• Withdrawal