This is NOT a complete review of Chapter 2 & 3. You must still study your notes and chapter reviews from your electronic workbooks and read the Key Concepts in the textbook at the end of each chapter–pp 37 & 61.

ACCOUNTS PAYABLE or ACCOUNTS RECEIVABLE? The money a customer owes a business.

ASSET or LIABILITY or OWNER’s EQUITY? Owner’s investment

ASSET or LIABILITY or OWNER’s EQUITY? Building

ACCOUNTS PAYABLE or ACCOUNTS RECEIVABLE? The money a business owes to a supplier for items purchased from the supplier.

ASSET or LIABILITY or OWNER’s EQUITY? Accounts Receivable

ASSET or LIABILITY or OWNER’s EQUITY? Cash

ASSET or LIABILITY or OWNER’s EQUITY? Accounts payable

ASSET or LIABILITY or OWNER’s EQUITY? Furniture

ASSET or LIABILITY or OWNER’s EQUITY? Trucks

FINANCIAL or MANAGERIAL? Accounting reports for people outside a business – external users

FINANCIAL or MANAGERIAL? Accounting reports for people inside a business – internal users

FINANCIAL or MANAGERIAL? Investors, creditors, government authorities

FINANCIAL or MANAGERIAL? Supervisors, owners, employees

Pay creditor amount owed Pay for wages Buy equipment with cash Purchase supplies on account Perform services and agree to be paid later Increase A, Increase OE Increase A, Decrease A Decrease L, Decrease A Decrease OE, Decrease A Increase A, Increase L Transacations

Perform services for cash Receive a check from a customer on account Owner withdraws cash from the business Write a check to a creditor paying on account Buy equipment on account Increase A, Increase L Decrease OE, Decrease A Increase A, Increase OE Increase A, Decrease A Decrease L, Decrease A Transactions

Pay creditor amount owed Pay for wages Buy equipment with cash Purchase supplies on account Perform services and agree to be paid later Equipment +, Cash - AP -, Cash - AR +, Capital + Supplies +, AP + OE -, Cash - Transactions

Owner invests cash in the business Business sells an asset for cash Owner withdraws an asset from the business Business runs an ad in a local newspaper and pays for it next month Pay the balance owed to a creditor Decrease L, Decrease A Decrease OE, Decrease A Increase A, Increase OE Increase A, Decrease A Decrease OE, Increase L Transactions

Perform services for cash Receive a check from a customer on account Owner withdraws cash from the business Write a check to a creditor paying on account Buy equipment on account Capital -, Cash - AP -, Cash - Cash +, AR - Equipment +, AP + Cash +, Capital + Transactions

Owner invests cash in the business Business sells some of its equipment for cash Owner withdraws some equipment from the business Business runs an ad in a local newspaper and pays for it next month Pay the balance owed to a creditor AP -, Cash - Capital -, Equipment - Cash +, Capital + Cash +, Equipment - Capital -, AP + Transactions