Chapter 2 & 3 Review

This is NOT a complete review of Chapter 2 & 3. You must still study your notes and chapter reviews from your electronic workbooks and read the Key Concepts in the textbook at the end of each chapter–pp 37 & 61.

ACCOUNTS PAYABLE or ACCOUNTS RECEIVABLE?

ACCOUNTS PAYABLE or ACCOUNTS RECEIVALBE?

The money a customer owes a business.

ASSET or LIABILITY or OWNER’s

EQUITY?

ASSET or LIABILITY or OWNER’s

EQUITY?

Owner’s investment

ASSET or LIABILITY or OWNER’s

EQUITY?

ASSET or LIABILITY or OWNER’s

EQUITY?

Building

ACCOUNTS PAYABLE or ACCOUNTS RECEIVABLE?

ACCOUNTS PAYABLE or ACCOUNTS RECEIVABLE?

The money a business owes to a supplier for items purchased from the supplier.

ASSET or LIABILITY or OWNER’s

EQUITY?

ASSET or LIABILITY or OWNER’s

EQUITY?

Accounts Receivable

ASSET or LIABILITY or OWNER’s

EQUITY?

ASSET or LIABILITY or OWNER’s

EQUITY?

Cash

ASSET or LIABILITY or OWNER’s

EQUITY?

ASSET or LIABILITY or OWNER’s

EQUITY?

Accounts payable

ASSET or LIABILITY or OWNER’s

EQUITY?

ASSET or LIABILITY or OWNER’s

EQUITY?

Furniture

ASSET or LIABILITY or OWNER’s

EQUITY?

ASSET or LIABILITY or OWNER’s

EQUITY?

Trucks

FINANCIAL or MANAGERIAL?FINANCIAL or MANAGERIAL?

Accounting reports for people outside a business – external users

FINANCIAL or MANAGERIAL?FINANCIAL or MANAGERIAL?

Accounting reports for people inside a business – internal users

FINANCIAL or MANAGERIAL?FINANCIAL or MANAGERIAL?

Investors, creditors, government authorities

FINANCIAL or MANAGERIAL?FINANCIAL or MANAGERIAL?

Supervisors, owners, employees

Pay creditor amount owed

Pay for wages

Buy equipment with cash

Purchase supplies on account

Perform services and agree to be paid later

Increase A, Increase OE

Increase A, Decrease A

Decrease L, Decrease A

Decrease OE, Decrease A

Increase A, Increase L

Transacations

Perform services for cash

Receive a check from a customer on account

Owner withdraws cash from the business

Write a check to a creditor paying on account

Buy equipment on account

Increase A, Increase L

Decrease OE, Decrease A

Increase A, Increase OE

Increase A, Decrease A

Decrease L, Decrease A

Transactions

Pay creditor amount owed

Pay for wages

Buy equipment with cash

Purchase supplies on account

Perform services and agree to be paid later

Equipment +, Cash -

AP -, Cash -

AR +, Capital +

Supplies +, AP +

OE -, Cash -

Transactions

Owner invests cash in the business

Business sells an asset for cash

Owner withdraws an asset from the business

Business runs an ad in a local newspaper and pays for it next month

Pay the balance owed to a creditor

Decrease L, Decrease A

Decrease OE, Decrease A

Increase A, Increase OE

Increase A, Decrease A

Decrease OE, Increase L

Transactions

Perform services for cash

Receive a check from a customer on account

Owner withdraws cash from the business

Write a check to a creditor paying on account

Buy equipment on account

Capital - , Cash -

AP -, Cash -

Cash +, AR -

Equipment +, AP +

Cash +, Capital +

Transactions

Owner invests cash in the business

Business sells some of its equipment for cash

Owner withdraws some equipment from the business

Business runs an ad in a local newspaper and pays for it next month

Pay the balance owed to a creditor

AP -, Cash -

Capital -, Equipment -

Cash +, Capital +

Cash +, Equipment -

Capital -, AP +

Transactions