1.3 Accounting Review

An increase in owner's equity resulting from the operation of a business is called

• REVENUE

• EXPENSE

• WITHDRAWAL

• SALE ON ACCOUNT

A sale for which cash will be received at a later date is

• SALE ON ACCOUNT

• ACCOUNTS PAYABLE

• REVENUE

• EXPENSE

Assets taken out of a business for the owner's personal use is a

• Investment

• Withdrawal

• Expense

• Asset

REVENUE ____ owner's equity

• INCREASE

• DECREASE

Expense ____ owner's equity

• INCREASES

• DECREASES

WITHDRAWAL ____ owner's equity

• INCREASES

• DECREASES

Received cash from owner is an example of a WITHDRAWAL.

• TRUE

• FALSE

Received cash on account from OakDale School, $1500.

The 2 accounts here are CASH and

• Accounts Payable

• Accounts Receivable

• Capital

• Supplies

Sold services on account to Primrose Paper, $800.

The 2 accounts would be

• CASH

  &

  SUPPLIES

• CAPITAL

  &

  ACCOUNTS RECEIVABLE

• CASH
  &

  ACCOUNTS RECEIVABLE

• CAPITAL
  &
  CASH

Paid cash for an electricity bill, $900.

The 2 accounts would be

• CASH
  &
  CAPITAL

• CASH
  &
  ACCOUNTS PAYABLE

• CASH
  &
  ACCOUNTS RECEIVABLE

• CASH
  &
  SUPPLIES