Chapter 1 Review 1 - Classification

Supplies

• Asset

• Liability

• Owner's Equity

Owner's Name, Capital

• Asset

• Liability

• Owner's Equity

Prepaid Insurance

• Asset

• Liability

• Owner's Equity

Cash

• Asset

• Liability

• Owner's Equity

When the owner makes an investment, what account does it go under?

• Asset

• Liability

• Owner's Equity

When supplies are bought with cash the supplies account

• increases

• decreases

When supplies are bought on account, the two account affected are

• assets and owner's equity

• assets and liabilities

Supplies bought ON ACCOUNT is a

• asset

• liability

• owner's equity

Receive cash from sales ...the two accounts affected are

• Assets increase and Liabilities increase

• Assets increase and Owner's equity increases

• Assets decrease and Owner's Equity decreases

• None of the above

Sold services means

• expense

• sale

• withdrawal

• investment