Chapter 3 - Analyzing Business Transactions

A business transaction always affects at least __ accounts.

The accounting equation is

​ (a)   ​ (b)   ​ (c)   ​ (d)   ​ (e)  

• Assets
• =
• Liabilities
• +
• Owner's Equity
• -
• *
• /
• Cash in Bank
• Capital

"Received" is a keyword for all Accounts Receivable transactions.

• True

• False

"Paid" is a keyword for all Accounts Payable transactions.

• True

• False

All business transactions will affect ONE asset and ONE equity account.

• True

• False

Checks are treated just like cash.

• True

• False

"Withdrew" is a keyword for all Withdrawal transactions.

• True

• False

"Invested" is a keyword for all Investment transactions.

• True

• False

Which accounts are affected?

Took from personal savings and deposited into the business.

• Cash in Bank

• Accounts Receivable

• Capital

• Accounts Payable

Which accounts are affected?

Transferred furniture.

• Cash in Bank

• Office Furniture

• Capital

• Accounts Payable

• Accounts Receivable