Accounting - Equation / Debit / credits

Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as __________.

• Assets
• Liabilities
• Owner Equity
• Equity

What type of account is Account Receivable?

• Assets

• Expenses

• Liabilities

• Revenues

Obligations (amounts owed) are reported on the balance sheet and are referred to as __________.

• Assets
• Liabilities
• Debt
• Owner Equity

The accounting equation is

• Assets = Liabilities + Owner's Equity
• Assets = Liabilities - Owner's Equity
• Assets - Owner's Equity + Liability

What type of account is Accounts Payable?

• Assets

• Expenses

• Liabilities

• Revenues

Revenues minus expenses equals:

• Assets
• Liabilities
• Owner Equity
• Net Income

The payment of cash to supplier will?

• Increase payable and reduce cash balance

• Reduce account payable and increase purchases

• Increase receivables and reduce cash balance

• Reduce cash balance and reduce current liabilities

What is the normal balance for assets?

• DEBIT
• CREDIT 

What is the normal balance for liabilities?

• DEBIT
• CREDIT 

Expense is

• An increase in Asset

• Has no effect in asset

• A decrease in owner's equity

• An increase in owner's equity