Accounting ch. 2-4

How would an accountant record an increase in cash?

• Debit
• Credit

How would an accountant record an increase in sales?

• debit
• credit

How would an accountant record an increase in expenses?

• debit
• credit

The period of time covered by an accounting report is the accounting period.

• True
• False

Any amounts owed by a business and reported on the balance sheet are referred to as ________________.

• assets
• liabilities
• profit
• expenses

The basic accounting equation is Assets=Liabilities + _______________________.

• Income
• Owner's Equity
• Expenses
• Profit

Anything of value that is owned by the company (such as cash, accounts receivables, vehicles, etc.) are reported on the balance sheet and are referred to as _______________.

• assets
• liabilities
• profit
• income

Owner's equity just refers to the Capital of the owner

• True

• False

The Accounting Equation must always be in balance.

• True
• False

Purchases from a supplier on credit is a liability.

• True
• False