Week 6

This type of business is operated by a single owner.

• Corporation

• Partnership

• Sole Proprietorship

• Justin Bieber

A business will continue to operate in the forseeable future

• Revenue Recognition

• Going Concern Principle

• Monetary Unit Principle

• Business Entity Assumption

The closing balance at the end of a period is the same as the opening balance at the beginning of the next period.

• True

• False

DR is a Debit Balance

• True

• False

CR is a Credit Balance

• True

• False

Received a maintenance bill for $500, which will be paid next month

• Debit Accounts Payable; Credit Maintenance Expense

• Debit Maintenance Expense; Credit Accounts Payable

Received $2,750 cash for services provided.

• Debit Bieber; Credit Bieber

• Debit Cash; Credit Service Revenue

• Debit Service Revenue; Credit Cash

Borrowed $4,000 cash from the bank

• Debit Owner's Equity; Credit Cash

• Debit Cash, Credit Bank Loan

Paid $700 cash to reduce the amount owed to a supplier

• Debit Cash; Credit Accounts Payable

• Debit Accounts Payable; Credit Cash