ACC11 Exam#1

Examples of Liabilities

Accounts Payable Salaries Payable Taxes Payable Loans/Notes Payable Accrued Expenses Unearned Revenue

Basic Accounting Equation

Assets = Liabilities + Owners Equity

Examples of Assets

Cash Equipment Supplies Accounts Receivable Inventories Land/Buildings Prepaid Expenses

Examples of Owners Equity

Owners Investment Owners Drawings Sales/Service Revenue Salary Expenses Depreciation Expense Rent Interest Expense Income Tax Expense

Credits are used to record

decrease in assets decrease in expenses increase in liabilities increase in revenues increase in owners investment

Debits are used to record

increase in assets increase in expenses decrease in liabilities decrease in revenues decrease due to drawings