Accounting Equation and Analyzing Transactions

Identify which type of account is affected: The owner invested PHP48,000 cash in the business.

• Assets and Liabilities

• Assets and Owner's Equity

• Owner's Equity and Personal Cash

• Assets and Cash Investment

Identify which type of account is affected: Paid liabilities worth PHP53,000

• Assets and Liabilities

• Assets and Owner's Equity

• Owner's Equity

• Assets

Identify which type of account is affected: The business purchase office supplies on account

• Assets and Liabilities

• Assets and Owner's Equity

• Owner's Equity and Supplies

• Assets and Purchasing

Identify which type of account is affected: Purchased equipment at PHP20,000 for cash.

• Assets and Liabilities

• Assets and Owner's Equity

• Owner's Equity

• Assets

Identify which type of account is affected: The owner withdrew supplies worth PHP5,000 or the business used supplies worth PHP8,000.

• Assets and Liabilities

• Assets and Owner's Equity

• Owner's Equity and Liability

• Liability and Owner's Equity

The following are the types of major accounts except:

• Owner's Equity

• Liabilities

• Assets

• Withdrawal

Statement 1: Accounting is useful in making economic decisions. Statement 2: Accounting concerns quantitative data that are measurable in terms of money.

• Only statement 1 is correct

• Only statement 2 is correct

• Both statements are correct

• Both statements are incorrect

Identify which type of account is affected: Paid PHP340 cash for this month’s utility bill.

• Assets and Liabilities

• Assets and Owner's Equity

• Assets and Cash Account

• Owner's Equity and Liabilities

The accounting equation is?

• Assets + Owner's equity = Liabilities

• Assets - Liabilities = Owner's equity

• Assets =Liabilities + Owner's equity

• Assets = Owner's equity - Liabilities

Accounting information must be available on time when needed if it is to influence decisions.

• True

• False