Introductory Bookkeeping Concepts
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1. Assets are property or economic resources that are expected to provide a future benefit to a business. TrueFalse

2. Assets include accounts payable and notes payable.TrueFalse

3. Assets are equal to liabilities plus owner's equity.TrueFalse

4. If assets equal 100,000 and liabilities equal 25,000, then owner's equity is 125,000.TrueFalse

5. Credits increase asset and expense accounts.TrueFalse

6. Not all businesses use the same chart of accounts.TrueFalse

7. Payments made for an owner's personal expenses are charged to owner's draws.TrueFalse

8. If liabilities equal 75,000 and owner's equity equals 25,000, then assets are 50,000.TrueFalse

9. An investment by the owner to his/her business will decrease owner's capital.TrueFalse

10. The normal balance for the owner's drawing account is a credit balance.TrueFalse

11. Supplies On Hand would be classified as an expense.TrueFalse

12. Fees earned are classified as an asset account.TrueFalse

13. The cash account is increased with a credit.TrueFalse

14. A credit to Accounts Payable increases the accounts balance.TrueFalse

15. A credit to fees earned will increase the balance of the fees earned account. TrueFalse

16. Whether a debit or credit increases or decreases an account's balance depends on the type of account.TrueFalse

17. The profit or loss for a period is reported using a balance sheet.TrueFalse

18. The financial position of a business as of a specific date is reported using a balance sheet.TrueFalse

19. Accounts payable, notes payable, taxes payable, and accounts receivable are all types of liability accounts.TrueFalse

20. The amount calculated by subtracting total liabilities from total assets is called owner's equity or net assets.TrueFalse

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