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A piece of equipment owned by a business

A sum of money owed to the business

An inventory of goods that have yet to be sold

A building that has been rented for use by the business






 






 


 



   







Debit a liability accountCredit an expense account

Debit the bank accountCredit an expense account

Debit an asset accountCredit an asset account

Debit an asset accountCredit a sales account



 





 






  




A sale has not been made because the business has not been paid.

The business owes money for the sale.

The business is owed money from the sale.

The liabilities of the business have increased.



 


 





 

 







 



A debit to an asset account and a credit to an expense account.

A credit to a purchase account and a debit to a sales account.

A debit to a liability account and a credit to an asset account.

A credit to a capital account and a debit to an asset account












 


All partners have invested an equal amount of capital.

All partners are personally liable for the debts of the business.

Partnerships do not get favourable tax treatment compared to corporations.

 A partnership requires at least three people.

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"  
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 #  

retained earnings

assets

cost principle

net loss

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Drawings

Business perks

Dividends

Bonuses

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Additional assets

Reserve assets

Preference shares

Retained earnings

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A credit of $1000 to purchases.

A debit of $1000 to sales.

A credit of $1000 to accounts receivable.

A debit of $1000 to accounts receivable.

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Liabilities.
 Purchases.

Revenues.

Assets

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A cash flow statement.

he bank statement for the business.

A balance sheet.

A statement of retained earnings.

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Debit the purchases account with $500 and the sales account with $500

Debit the sales account with $500 and the bank account with $500

Debit the bank account with $500 and credit the sales account with $500

Debit the bank account with $500 and the sales account with $500

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Debit the telephone account and credit the bank account.

Credit the purchases account and debit a loan account.

Debit the telephone account and credit an accounts payable account.

Credit an asset account and debit a liabilities account.

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A cash flow statement

A retained earnings statement

An income statement

A balance sheet

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 It has been bought recently and was bought new and not used

It could be sold immediately by the business for other assets.

It could be realized in cash or sold or consumed in the business within one year

It is an piece of new machinery that is expected to last for at least ten years.

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Inventory

Plant

A rented building

Equipment

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Calculate current ratio

Divide current assets by current liabilities

Deduct accounts receivable from accounts payable

Divide current ratio by current liabilities

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The overall assets of his business have increased.

One type of asset has increased whilst another type of asset has decreased.

There has been no transaction in accounting records.

The overall assets of the business have remained the same.

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There are more proprietorships than corporations in the United States.

The revenue produced by corporations is less than that produced by partnerships.

As soon as the turnover of a business exceeds a fixed sum it must become a corporation.

The revenue produced by corporations exceeds the combined revenues produced by partnerships
and proprietorships.

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2

   


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Assets plus liabilities equal Equity

Assets less liabilities equal Equity

Liabilities less Equity equal Assets

Liabilities plus Equity equal Assets

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1.1.

2.0.

97.

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