Accounting Equation

Front

An economic event that has a direct impact on the business.

Back

Business transactions

Front

An increase of this account will decrease Owner's Equity: Asset Account, Expense Account, Liability Account, Revenue Account

Back

Expense Account

Front

Assets= Liabilities __ Owner's Equity

Back

+

Front

The accounting equation is a very important tool to help in understanding and ______________ business transactions.

Back

analyzing

Front

The accounting equation must remain in balance after each ________.

Back

transaction

Front

Liabilities = Assets _____Owner's Equity

Back

-

Front

A separate record used to summarize changes in each assets, liabilities, and owner's equity.

Back

Account

Front

The financial structures of a business enterprise are made up of assets, liabilities, and owner's equity.

Back

True

Front

The business rendered service to a customer on account. What is the Asset account that increases as a debit?

Back

Accounts Receivable

Front

The business received cash from that last customer for the service rendered on account. What Asset account decreases?

Back

Accounts Receivable