Accounting Chapter 1

b.

On 8/1 supplies costing $500 were purchased on credit. Record this transaction in the accounting equation by: a. decreasing cash and increasing supplies b. increasing supplies, and increasing accounts payable

liabilities

The following are examples of what -taxes payable -accounts payable -notes payable -wages payable

supplies cash

To record the purchase of supplies for cash, the correct entry in the accounting equation would include an increase to (equipment/cash/supplies) ________ and a decrease to (e/c/s) __________

withdrawals

decrease equity and are the assets removed from the company for personal use

expenses

decrease equity and are the cost of assets or services used to earn revenue

dividends

distributions of cash or other assets to stockholders

investments

increase equity and are assets an owner puts into the business

revenues

increase equity and are the assets earned from a company's earning activities