Let's review 1.3!!! Accounting

The 3 types of Capital are: Accounts Receivable, Accounts Payable, and Owner's Equity

• TRUE

• FALSE

Accounts Payable is the account that lists how much money WE OWE someone.

AND

Accounts Receivable is the account that lists how much money SOMEONE ELSE owes us.

• TRUE

• FALSE

"Sold services on account"

means what is happening?

• We provided a service and will be paid at a later time.

• We provided a service and are being paid with cash immediately.

• Someone provided a service to us and we will pay them at a later date.

• We are getting cash from a previous sale.

Received cash on account, $400.

What 2 accounts are being affected?

• Accounts Receivable

  Cash

• Cash

  Accounts Payable

• Cash

  Capital

• Accounts Payable

  Cash

Phone bills, rent, and internet bills are all examples of

• REVENUES

• EXPENSES

• WITHDRAWALS

• SALES ON ACCOUNT

Received cash from sales.

This is an example of

• Revenue

• Expense

• Withdrawal

• Accounts Receivable

Paid cash to owner for personal use.

This is an example of

• REVENUE

• EXPENSE

• WITHDRAWAL

• ACCOUNTS RECEIVABLE

Paid cash for an internet bill, $370.

The 2 accounts being affected would be...

• CASH
  &
  CAPITAL

• CASH
  &
  ACCOUNTS PAYABLE

• CASH
  &
  ACCOUNTS RECEIVABLE

• CASH
  &
  SUPPLIES

Sold services on account to PetsMart, $1800.

The 2 accounts being affected here would be...

• CASH

  &

  SUPPLIES

• CAPITAL

  &

  ACCOUNTS RECEIVABLE

• CASH
  &

  ACCOUNTS RECEIVABLE

• CAPITAL
  &
  CASH

Received cash on account from Tailor Made, $500.

The 2 accounts being affected here are CASH and

• Accounts Payable

• Accounts Receivable

• Capital

• Supplies