Acct. Ch. 3- Accounting Equation & Business Transactions

The accounting equation should remain in balance after each transaction

• True

• False

A business transaction affects at least 2 accounts

• True

• False

"Assets + Liabilities = Owner Equity" is another way to express the accounting equation

• True

• False

The increase and decrease caused by business transaction are recorded in specific accounts

• True

• False

The private enterprise system is based on the right to own property

• True

• False

The Owner's personal financial transaction are part of the business records

• False

• True

The total financial claims to the assets of a business are referred to as equity

• True

• False

The owner's claim to the assets of a business are liabilities

• True

• False

When a business transaction occurs, the financial position of the business changes

• True

• False

A creditor has a financial claim to the assets of a business

• True

• False