Duplicate of BAF3M Ch 1-4

The owner bought a new computer for personal use. Is this a business transaction?

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

Choose the incorrect statement. In the event of a business closing down, the

Computers will soon make accounting skills unnecessary.

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

A business with more than one owner is called a:

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

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

Debtors are customers who owe money to a business.

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

Shareholders are the owners of a corporation.

A person's net worth can be calculated by subtracting liabilities from assets.

Firing an employee is a business transaction.

What does CPA stands for?

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

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

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

An asset account cannot have a credit balance.

Creditors are those who are owed money by a business.

Auditing may be described as:

A dental clinic is considered to be a merchandising business.

Identify the most positive change among the following items from Year 1 to Year 2.

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

Computers are important in accounting, but they cannot:

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

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

All business transactions affect owner's equity.

A knowledge of accounting is not helpful to entrepreneurs because employees do the accounting.

Assets = Liabilities - Owner's Equity

The sale of land for more than its cost value causes no change in total assets.

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