AC 231 Week 4 Quiz

An asset is something you

• own.

• owe.

A liability is something you

• owe.

• own.

Owner's Equity is

• Assets - Liabilities

• What is left when you subtract what you "owe" from what you "own"

• Both of the previous answers are correct.

Revenue is what your business

• earns

• spends

Expenses are what your business

• earns.

• spends.

Debits are always on the

• left.

• right.

Credits are always on the

• left.

• right.

The normal balance of an asset is a

• debit.

• credit.

The normal balance of a liability is a

• debit.

• credit.

The normal balance of owner's equity is a

• debit.

• credit.