1. 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.

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

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

4. ASSET or LIABILITY or OWNER’s EQUITY? Building

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

6. ASSET or LIABILITY or OWNER’s EQUITY? Accounts Receivable

7. ASSET or LIABILITY or OWNER’s EQUITY? Cash

8. ASSET or LIABILITY or OWNER’s EQUITY? Accounts payable

9. ASSET or LIABILITY or OWNER’s EQUITY? Furniture

10. ASSET or LIABILITY or OWNER’s EQUITY? Trucks

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

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

13. FINANCIAL or MANAGERIAL? Investors, creditors, government authorities

14. FINANCIAL or MANAGERIAL? Supervisors, owners, employees

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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