More accounting

The accounting equation is most often stated as:

Assets + Liabilities = Owner's Equity.

A balance sheet has three major sections;

Assets and Liabilites are on the left side and Onwer's Equity is on the right side.

A business paid cash: for rent, $700; to owner for personal use, $200; and for equipment repair, $50.

Expenses from the operation of the business decreased owner's equity by

A transaction to pay for goods and services needed to operate a business

Results in a decrease in

If a business paid cash for repairs to equipment,

This would

When items are bought and paid for at a future date,

another way to state this is to say these items are bought ON ACCOUNT.

The accounting equation must be

in balance to be correct.

Asset accounts are

listed on the right side of the accounting equation.

After each transaction,

the accounting equation must remain in balance.

Total assets are

the amount the owner has invested in the business.

The capital account is

the owner's liability account.

When two asset accounts are changed in a transaction

there must be an increase and a decrease.

When financial records for a business and for its owner's personal belongings are not mixed,

this is an application of the Business Entity accounting concept.

If a business received $2,000 from sales,

this would