Accounting

What is Owner's Equity?

• Owner's investment in a business

• Owner's concern about the business

• Owner's withdrawals from a business account

• Owner's reputation in the community

What is an example of a liability?

• Company vehicle

• Accounts Receivable

• Accounts Payable

• Fork lift

What term is associated with the "left side" of the T-account?

• The left side of the T-Account is called the negative side

• The left side of the T-account is called the positive side

• The left side of the T-Account is called the debit side

• The left side of the T-Account is called the credit side

What is Double-Entry Accounting?

• Using 2 accounting software programs on the same computer

• Every accounting entry is entered into the software two times

• Every accounting entry has an opposite, corresponding entry in a different account

• Using 2 accounting software programs on two separate computers

Which one of the following is a Liability?

• Supplies

• Office Equipment

• Notes Receivable

• Accounts Payable

When setting up your chart of accounts, what accounts are in the 400's?

• Revenue

• Assets

• Owner's Equity

• Liabilities

What is the main purpose of accounting?

• To print business documents to take to the bank in hope of obtaining a loan for your business

• To know if your business is making money or losing money

• To organize and analyze all financial activities of the business

• To let the business owner know if there are enough funds to purchase a much needed company vehicle

Accounting entries involve a minimum of how many accounts?

• Four

• Five

• Two

• Three

What is an example of direct deposit?

• Sending money from your Paypal account to your personal account regularly

• Creating a direct link between your checking account and your savings account

• Allowing your boss to send your paycheck directly to your bank account

• Paying your light bill each month out of the same account

Liabilities plus Owner's Equity equals what?

• Accounts Payable

• Assets

• Accounts Receivable

• Materials