Week 6

Nicole deposited $10,000 into her business account. Cash would be credited.

• True

• False

An obligation of a business to provide products or services to a customer in the future.

• Account Payable

• Account Receivable

• Unearned Revenue

• Prepaid Expense

Cash or equity invested in a hospitality business

• Unearned Revenue

• Owner's Withdrawals

• Prepaid Expense

• Owner's Contributions

An account receivable is money owed to the business by a customer

• True

• False

Cash received after a service is performed would decrease the accounts receivable account

• True

• False

Nicole's Burger Restaurant received $50 cash from a customer immediately after they ate their burgers. This would result in a debit to the cash account and a credit to the revenue account.

• True

• False

Equity increases when an expense is recognized

• True

• False

All information that affects the understanding of a financial statement must be recorded. This aligns with the going concern principle.

• True

• False

What does it mean if a hospitality business is a going concern?