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.