Week 2

Assets are what a company owns

• True

• False

Liabilities are what the business owes

• True

• False

An income statement shows the financial health of a business at a point in time

• True

• False

The Accounting Equation

• Assets + Liabilities = Owner's Equity

• Assets + Revenue = Owner's Equity

• Assets - Liabilities = Owner's Equity

• Assets - Expenses = Owner's Equity

Expenses are costs incurred when using or consuming a good or a service

• True

• False

Unearned revenue is money received from a customer, however, the goods or services have not yet been delivered

• True

• False

Rent is an asset

• True

• False

A fiscal year is 12 consecutive months that always begins in January

• True

• False

Prepaid Rent is an asset

• True

• False