Decrease in asset accounts.
Decrease in liability accounts.
Increase in the capital account.
Decrease in expense accounts.
Limited personal risk.
Can continue indefinitely
Owner makes all the decisions.
All of the above.
Easy to form.
Ends with the death of a stockholder.
Owned by stockholders.
None of the above.
Statement of owner's equity
It does not appear on a financial statement
Assets - Liabilities = Capital
Assets - Capital = Liabilities
Liabilities + Capital = Assets
Liabilities + Assets = Capital
It is a list of balances on the books
Shows the financial position of a business
It is a special account
Shows all the entries in the books
None of the above
No, there are sometimes good reasons why they differ
No, because it is not a balance sheet
Yes, except where the trial balance is extracted at the year end
Debit to Cash, credit to Accounts Receivable.
Debit to Cash, credit to Salaries Expense.
Debit to Salaries Expense, credit to Accounts Payable.
Debit to Salaries Expense, credit to Cash.
Value of the asset when it is purchased
Value of the asset at the end of its useful life
Cost of the asset
Allocation of the cost
Payment of two months' insurance in advance.
Payment of one month's rent.
Payment for routine maintenance on the company van.
Capital can only come from profit
Profit does not alter capital
Profit increases capital
Profit reduces capital
Income from continuing operations
Prior period adjustment
Debit Depreciation Expense $50, credit Accumulated Depreciation $50.
Debit Depreciation Expense $500, credit Accumulated Depreciation $500.
Debit Accumulated Depreciation $50, credit Depreciation Expense $50.
Debit Accumulated Depreciation $500, credit Equipment $500.
Debit Accounts Payable, $400; credit Travel Expense, $400.
Debit Travel Expense, $400; credit Accounts Payable, $400.
Debit Capital, $400; credit Accounts Payable, $400.
Debit Travel Expense, $400; credit Cash, $400.
Debit Cash $200 and Accounts Receivable $1,000; credit Catering Service Fees $1,200.
Debit Cash $200; credit Accounts Receivable $200.
Debit Cash $1,000 and Accounts Receivable $200; credit Catering Service Fees $1,200
Debit Accounts Receivable $1,200; credit Cash $200 and Catering Service Fees $1,000.