Accounting Basic Review 1

 What two accounts are involved when you receive cash from owner as an investment?

• cash and capital
• cash and investment
• cash and owner's equity
• cash and supplies

Mikaela Mundt invested $2,000.00 of her own money in the business. Receipt No. 1. What two accounts are affected?

• Cash and Insurance
• Cash and Prepaid Insurance
• Cash and Mikaela Mundt, Investment
• Cash and Mikaela Mundt, Capital

If the asset account balance is $250,000 and the liabilities account balance is $50,000. What is the owner's equity balance? (ALOE)

• $25,000

• $200,000

• $50,000

• $300,000

Which of the following are Assets?

• Bank Account

• Bank Loan

• Vehicles

• Bank overdraft

• Furniture and fittings

The following are liabilities .

• Bank Loan

• Stock / inventory

• Mortgage

• Accounts Payable

Equity can also be called Capital

• TRUE

• FALSE

When the business owes money it is called

• Accounts Receivable

• Account Payable

• An Asset

• Capital

When the business is owed money it is called

• Accounts Receivable

• Account Payable

• Capital

• A Liability

The following are expenses

• Insurance

• Salaries

• Sales

• Fees Received

• Petrol

The following are types of Income

• Sales

• Fees Received

• Salaries

• Staff Wages

• Advertising