Accounting 1 - Chapter 1

Which of the following is not an example of an expense...

• Advertising

• Utilities

• Repairs

• Accounts Receivable

Which of the following is an example of a transaction that affects only one side of the accounting equation...

• Bought supplies on account

• Paid cash on account

• Paid cash for insurance

• Received cash from the owner as an investment

Complete the equation...

Answer explanation

Assets = Liabilities - Owner's Equity

Complete the equation...

The accounting equation is stated as...

• Assets + Liabilities = Owner's Equity

• Assets + Owner's Equity = Liabilities

• Assets = Liabilities + Owner's Equity

• We have an equation?!? What is this? Math class!?!

Which of the following is not a disadvantage of a sole proprietorship

• Limited resources

• Limited expertise

• Quick and easy to make changes

• Obligation to follow federal and state laws

Which of the following is not an advantage of a sole proprietorship...

• Which of the following is not an advantage of a sole proprietorship...

• Easy to form

• Don't have to share profit

• Limited liability

A business owned by one person is a...

• Corporation

• Partnership

• Sole Proprietorship

• S Corp

Anything that includes the word prepaid is a(n)...

• Asset

• Liability

• Owner's Equity

• Revenue

Anything that includes the word receivable is a(n)...

• Asset

• Liability

• Revenue

• Expense