Know Your Worth
Net worth is calculated as ____ minus ____.
What are assets minus liabilities?
State the basic accounting equation.
What is Assets = Liabilities + Owner’s Equity?
Cash, supplies, and equipment are examples of what?
What are assets?
On which side of a T-account are debits recorded?
What is the left side?
A business owns equipment worth $25,000, supplies worth $2,000, and cash of $10,000. It owes $8,000 on a loan and $4,000 in accounts payable.
What is the business’s net worth (Owner’s Equity)?
If you have $15,000 in assets and $10,000 in liabilities, what is your net worth?
What is $5,000?
If liabilities increase, what must also increase to keep the equation balanced?
What are Assets?
Owing money to a bank is called what?
What is a liability (loan payable)?
On which side of a T-account are credits recorded?
What is the right side?
A company receives $5,000 cash from the owner as an investment.
Which two accounts are affected, and are they debited or credited?
True or False: Net worth can be negative.
What is True?
Owner invests $1,000 cash in the business. Which two parts of the equation change?
What are Assets and Owner’s Equity?
Is “Accounts Receivable” an asset or liability?
What is an asset?
If you receive $500 cash, how would you record it in the Cash T-account?
Debit Cash $500.
If you buy office supplies on account for $600,
Which T-accounts are affected and how (debit/credit placement)?
The owner’s claim to the assets of the business is called what?
What is owner's equity?
If assets are $25,000 and liabilities are $7,000, what is owner’s equity?
What is $18,000?
If you owe $2,000 for supplies purchased on account, what is the liability called?
What is Accounts Payable?
Which accounts increase with a credit? (Name at least 2).
Liabilities, Capital, Revenues
A bakery has assets of $100,000, liabilities of $40,000, and the owner withdraws $5,000 for personal use.
What is the new Owner’s Equity after the withdrawal?
If assets = $8,000 and owner’s equity = $3,000, what are the liabilities?
What is $3,000?
Buying supplies on account increases which two parts of the accounting equation?
What are Assets and Liabilities?
True or False: Prepaid insurance is considered an asset.
What is True?
Debits always mean increase, and credits always mean decrease.
False (depends on account type).
Assets = $75,000. Liabilities = $32,000. Owner invests an additional $10,000 cash.
What is the new Owner’s Equity and total Assets after the investment?