AF Ch 5 Test

An amount of money taken out of the business by the owner is

• Withdrawal
• Expense account

• Capital

• Temporary Account

record business income only.

• Revenue accounts
• Revenue recognition

• Permanent accounts

• Expense accounts

are used to record information for only one accounting period.

• Revenue accounts

• Expense accounts

• Temporary accounts
• Permanent accounts

The account shows the amount of the owner's investment, or equity, in a business.

• Expense

• Capital
• Permanent

• Withdrawal

are used to record the costs and services used by a business.

• Expense accounts
• Revenue accounts

• Capital

• Withdrawal

Recognizing & recording revenue on the earned date even if cash has not been received is

• Capital

• Revenue recognition

• Withdrawal

• Expense account

A credit to an expense account decreases the account balance

• True

• False

Withdrawals are increased on the debit side

• True

• False

The basic accounting equation may be expressed as A= L+OE

• True

• False

You may have two debits and one credit as long as the amounts are equal. True or False?

• True

• False