Ms. Fields: Accounting 1 Test (Ch. 1 & 2)

Assets 

• Anything owed by the company
• Anything owned of value by the company

Supplies purchased on account that will be paid for at a later date is a liability.

• True
• False

The owner's worth after assets are used to pay all liabilities is the definition of

• Owner's Equity
• Liabilities
• Assets

Always keep business and personal records separate?

• True
• False

Cash received means Cash is:

• Decreased
• Increased

Paid Cash means cash has:

• Decreased
• Increased

Liabilities often have the word __________ in their account title.

• Assets
• Payable/ on account

• Paid
• Equity

Which term is associated with "left" or "left-side"?

• Debit
• Credit
• Plus
• Minus

Which term is associated with "right" or "right-side"?

• Debit
• Credit
• Plus
• Minus

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