Accounting 1 POD Quizz

A formal report that shows what an individual owns, what an individual owes, and the difference between the two is a

True or False: The balance of the asset accounts must be reduced to zero to prepare the accounts for the next period

The standards and rules that accountants follow while recording and reporting financial activities are called

True or False: When an owner withdraws cash from the business, the transaction affects both assets and owners equity

A person or business to whom a liability is owed is a

True or False: Keeping separate the financial records for a business and for its owners personal belonging is an application of the business Entity accounting concept

True or False: The accounting equation is most often stated as Assets + Liabilities= Owners Equity

True or False: A withdrawal is an expense

True or false: each liability account has a normal debt balance

True or False: The balance of an account increase on the same side as the normal balance side