Lec 7+8

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

When you receive cash from sales, you debit cash and credit sales

• True

• False

Paying cash for insurance increases and decrease an asset

• False

• True

When you pay cash for supplies, you debit supplies

• False

• True

Buying supplies on account creates a receivable

• True

• False

Any activity that changes the Accounting Equation is called a payment

• False

• True

A sale for which payment will be received at a later date is called a sale on account

• True

• Fales

A withdrawl decreases owner's equity

• False

• True

A T account is a device used to analyse transactions in accounting

• False

• True

Mikaela Mundt invested $2,000 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