acct 1

The Accounting Equation is usually expressed as ________

a. Assets = Liabilities + Owners' Equity

When the owner withdraws cash from the business for personal use total owners' equity _______ .

a. decreases

When the owner invests more cash in the business ________ .

b. both Assets and Owners' Equity increase

When a customer pays cash for the company's services, total Owners' Equity ________ .

b. increases

When the company provided services but is not yet paid, owners' equity increases by the amount of the revenue, and ________ .

b. liabilities increase

When the company pays cash for an expense, assets decrease and ________ .

b. owners' equity decreases

When the company is eventually paid for services performed in the past, ________ .

b. total assets stay the same

When the owner withdraws cash from the business for personal use, this is called a ________ .

c. Drawing

When the business spends cash to purchase new equipment, total Assets ________ .

c. stay the same

Which of these transactions shown in this video causes the Accounting Equation to go out of balance:

e. None of these