| A | B |
|---|
| Accounts Receivable is | an asset account |
| If the owner of a business transferred a telephone from her home to the business, the account credited would be | Owner`s Capital |
| Accounts Payable is | a liability account |
| If a business purchased a new computer system for cash the account debited would be | Computer Equipment |
| If an owner deposits $30,000 in the business checking account, the two accounts affected are | Cash in Bank and Owner`s Capital |
| An economic event that causes an increase or decrease in assets, liabilities, or owner`s equity is called | a business transaction |
| When a business buys an item on credit, it is buying | on account |
| The purchase of a desk on account will increase Office Furniture and will also increase | Accounts Payable |
| The word equities refers to claims against the assets of a business by | both creditors and owners |
| Anything of value that is owned or controlled is called | property |
| The accounting term for the financial claims to assets is | equity |
| Assets that are not intended to be converted to cash or to be used in the normal operations of the business in the next accounting period are called | investments |
| If the creditor`s financial claim to property totals $1,000 and the owner`s financial claim to property totals $11,000 , the property value is | $12,000 |
| The accounting equation is | assets = liabilities + owners equity |
| Property and financial claims are measured in | dollar amounts |
| When you buy property and agree to pay for it later, you are buying on | credit |
| When an owner takes cash or other assets from the business for personal use it is called | a withdrawal |
| Each of the following is an expense except a payment for | equipment |
| Income earned from the sale of goods or services is called | revenue |
| The price paid for goods or services used to operate a business is called | an expense |
| The affect of Revenue on Owner`s Equity is to | increase it |
