Pre-Activity "Know your Accounts" 25-26

Which of the following is an example of an asset?

• Accounts Payable

• Cash

• Rent Expense

• Owner’s Capital

Which item is most likely a liability?

• Service Revenue

• Equipment

• Accounts Payable

• Utilities Expense

What account title represents business income?

• Drawings

• Supplies

• Service Income

• Salaries Expense

Which account reduces owner’s equity?

• Capital

• Drawings

• Service Income

• Cash

What type of account is "Building"?

• Asset

• Expense

• Liability

• Revenue

Salaries Expense belongs to what type of account?

• Asset

• Revenue

• Expense

• Liability

Prepaid Rent is considered a/an:

• Asset

• Expense

•  Revenue

•  Liability

What account title shows money the owner invested into the business?

• Cash

• Owner’s Capital

• Accounts Receivable

• Salaries Expense

Which of these is a revenue account?

• Utilities

• Professional Fees

• Supplies

• Capital

Which of the following increases the business's assets?

• Paying salaries

• Receiving customer payment

• Buying office supplies

• Owner’s withdrawal