Accounting Unit 1 Review

Accounting Equation

100

What is the accounting equation?

A = L + OE

200

If I add to an asset account, what are my 2 options to make the accounting equation balance?

Subtract another asset

Add to L or OE

300

A withdrawal decreases owners equity and cash?

True

400

The accounting equation does not have to balance to be correct. 

False

500

If two amounts of are recorded on the same side of the accounting equation, the equation will not balance?

False

Types of Accounts

100

Cash

Asset

200

Captial

OE

300

Accounts Payable

L

400

Accounts Receiveable

Asset

500

Withdrawal

OE

Transactions

100

Paid cash for supplies

Cash - Decrease

Supplies - Increase

200

Received cash from owner as investment.

Cash - Increase

Capital - Increase

300

Paid cash on account.

Cash - Decrease

Accounts Payable - Decrease

400

Bought supplies on account.

 Supplies - Increase

Accounts Payable - Increase

500

Received cash from sales.

Cash - Increase

Capital - Increase