introduction accounting

Which of the following is correct?

• Owner’s Equity = Liabilities + Assets

• Liabilities = Assets + Owner’s Equity

• Assets = Liabilities + Owner’s Equity

• Assets = Owner’s Equity

Which of the following normally have a debit balance?

• Liability accounts

• Equity or capital accounts

• Income or revenue accounts

• Asset accounts

An Asset is...

• An asset is a resource currently owned and controlled by a business as a result of a past transaction

• An asset is a resource owned by a business as a result of a past transaction

• An asset is something that costs money

Which of the following is an example of an asset?

• Vehicle

• Electricity

• Mortgage

A liability is...

• obligation of a business as a result of a past transaction

• Something a business has to pay because of a past event

• current obligation of a business as a result of a past transaction

Which of the following is an example of a liability?

• Loan

• Building

• Sales

• Accounts receivable

following are assets in this business. label them

c

b

a

machines

building

stocks