Introduction to the Accounting Equation

Classify Bank

• Asset

• Liability

• Equity

• Expense

'Paid' means

Accounts Payable are a....

• Asset

• Liability

• Equity

• Expense

Accounts Receivable are a

• Asset

• Liability

• Equity

• Expense

Mortgage is a....

• Asset

• Equity

• Liability

• Expense

When we pay Wages the following happens

• Bank goes UP and Equity goes UP

• Bank goes DOWN and Equity goes UP

• Bank goes DOWN and Equity goes DOWN

• Accounts Payable go UP and Equity goes DOWN

When the owners invests a $5000 car into the business

• Bank goes UP and Equity goes UP

• Bank goes DOWN and Equity goes UP

• Vehicles goes UP and Equity goes DOWN

• Vehicles goes UP and Equity goes UP

When we take out a $2000 bank loan

• Bank goes UP and Loan goes UP

• Bank goes DOWN and Loan goes UP

• Bank goes DOWN and Loan goes DOWN

• Bank goes UP and Loan goes DOWN

When the owner takes cash out of the business this is called....? Hint Starts with D

Another name for Inventory is....

• Inventories

• Stock

• Purchases

• Sales