VYC1 Accounting Chapter 2
If Liabilities are $4,000 and owners equity is $15,000, assets are:
$19,000
If during the year, total assets increase by $75,000 and total liabilities decrease by $16,000, by how much did owner's equity increase/decrease?
$91,000 increase.
When the Owner invests cash in a buisness:
Assets and Owners Equity increase.
When the owner withdraws cash for personal use:
Assets decrease and owners equity decreases as well.
Which financial statement is reported as of a specific date?
Balance Sheet.
The statement of Owners Equity is calculated as follows:
Beginning Capital + net income - withdrawals + additional investments = ending capital.
True or False?Withdrawals by the owner are reported on the income statement:
False
True or False? A withdrawal of funds by the owner for personal use is considered a business expense:
False.
The Balance sheet heading includes the firms name, title of report, date of report. It does not include:
The Firms address
True or False? Al Dunn Bakery bought a new oven for $1,380. Al paid $300 cash down payment and will pay the balance in 30 days. Total assets increased by $1,080:
True.