BAF3M1 Grade 11 Accounting - Challenge 2

Shareholders are the owners of a corporation.

All business transactions affect owner's equity.

Creditors are those who are owed money by a business.

The terms "capital" and "equity" have essentially the same meaning.

A loan payment would cause owner's equity to decrease.

Which of the following statements concerning the balance sheet is incorrect?

Assets = Liabilities - Owner's Equity

Which of the following statements about the format of a balance sheet is true?

A dental clinic is considered to be a merchandising business.

For every business transaction, there must be at least one debit and one credit entry.

Money owed by customers to the business is listed on the balance sheet as accounts payable.

The debit side of a T-account is always the left side.

If total liabilities are $735 and owner's equity is $700, then total assets are:

Which of the following transactions would affect owner's equity?

Computers are important in accounting, but they cannot:

A business with more than one owner is called a:

A business bought supplies for $250 cash, with the remaining $600 to be paid later.

Firing an employee is a business transaction.

Including an owner's family home on the balance sheet of the business violates which principle?

Which of the following information could you not learn from a balance sheet?