MOD 10 - effects of cash transactions Flashcards
1
Q
how do we work out how much the assets are in the business ?
A
owners equity + liabilities
2
Q
how do we work out owners equity ?
A
assets - liabilities
3
Q
how do we work out what the liabilities are ?
A
assets - owners equity
4
Q
when the owner makes a capital contribution into the business account what are the 2 things that will increase ?
A
assets and owners equity
5
Q
when the business receives current income it will increase the business 1 and it will 2 owners equity
A
1 assets
2 increase
