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Business
Accounting
EXERCISES For questions number 1 to 7, given the accounting transaction, indicate whether the asset, liability or owner's equity has increase or decrease or has no effect by circling the appropriate answer. 1 The owner invests personal cash in the business. (Example) Asset Increase Decrease No Effect Liability Increase Decrease No Effect Owner's Equity Increase Decrease No Effect 2 The owner withdraws cash from the business for personal use. Asset Increase Decrease No Effect Liability Increase Decrease No Effect Owner's Equity Increase Decrease No Effect 3 The company receives cash from a bank loan. Asset Increase Decrease No Effect

EXERCISES For questions number 1 to 7, given the accounting transaction, indicate whether the asset, liability or owner's equity has increase or decrease or has no effect by circling the appropriate answer. 1 The owner invests personal cash in the business. (Example) Asset Increase Decrease No Effect Liability Increase Decrease No Effect Owner's Equity Increase Decrease No Effect 2 The owner withdraws cash from the business for personal use. Asset Increase Decrease No Effect Liability Increase Decrease No Effect Owner's Equity Increase Decrease No Effect 3 The company receives cash from a bank loan. Asset Increase Decrease No Effect

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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exercise for finance acc.pdf O File | C:/Users/User/Desktop/FIN%20ACC/exercise%20for%20finance%20acc.pdf + (D Page view A Read aloud T Add text V Draw E Highlight O Erase of 4 increase Decrease No Effect 3 The company receives cash from a bank loan Asset Increase Decrease No Effect Liability Increase Decrease No Effect Owner's Equity Increase Decrease No Effect 4 The company repays the bank loan. Asset Increase Decrease No Effect Liability Increase Decrease No Effect Owner's Equity Increase Decrease No Effect 5 The company purchases office equipment by cash. Asset Increase Decrease No Effect Liability Increase Decrease No Effect Owner's Equity Increase Decrease No Effect 5:29 PM O Type here to search IMI 26/10/2021 ENG (p ツ
Transcribed Image Text:exercise for finance acc.pdf O File | C:/Users/User/Desktop/FIN%20ACC/exercise%20for%20finance%20acc.pdf + (D Page view A Read aloud T Add text V Draw E Highlight O Erase of 4 increase Decrease No Effect 3 The company receives cash from a bank loan Asset Increase Decrease No Effect Liability Increase Decrease No Effect Owner's Equity Increase Decrease No Effect 4 The company repays the bank loan. Asset Increase Decrease No Effect Liability Increase Decrease No Effect Owner's Equity Increase Decrease No Effect 5 The company purchases office equipment by cash. Asset Increase Decrease No Effect Liability Increase Decrease No Effect Owner's Equity Increase Decrease No Effect 5:29 PM O Type here to search IMI 26/10/2021 ENG (p ツ
exercise for finance acc.pdf O File | C:/Users/User/Desktop/FIN%20ACC/exercise%20for%20finance%20acc.pdf D Page view A Read aloud T Add text V Draw E Highlight O Erase of 4 EXERCISES For questions number 1 to 7, given the accounting transaction, indicate whether the asset, liability or owner's equity has increase or decrease or has no effect by circling the appropriate answer. 1 The owner invests personal cash in the business. (Example) Asset Increase Decrease No Effect Liability Increase Decrease No Effect Owner's Equity Increase Decrease No Effect 2 The owner withdraws cash from the business for personal use. Asset Increase Decrease No Effect Liability Increase Decrease No Effect Owner's Equity Increase Decrease No Effect 3 The company receives cash from a bank loan Asset Increase Decrease No Effect 5:29 PM O Type here to search IMI 26/10/2021 ENG
Transcribed Image Text:exercise for finance acc.pdf O File | C:/Users/User/Desktop/FIN%20ACC/exercise%20for%20finance%20acc.pdf D Page view A Read aloud T Add text V Draw E Highlight O Erase of 4 EXERCISES For questions number 1 to 7, given the accounting transaction, indicate whether the asset, liability or owner's equity has increase or decrease or has no effect by circling the appropriate answer. 1 The owner invests personal cash in the business. (Example) Asset Increase Decrease No Effect Liability Increase Decrease No Effect Owner's Equity Increase Decrease No Effect 2 The owner withdraws cash from the business for personal use. Asset Increase Decrease No Effect Liability Increase Decrease No Effect Owner's Equity Increase Decrease No Effect 3 The company receives cash from a bank loan Asset Increase Decrease No Effect 5:29 PM O Type here to search IMI 26/10/2021 ENG
Expert Solution
Step 1 Introduction

The assets includes cash, account receivables, prepaid expenses, etc. The assets are debited with an increase. 

The liabilities include creditors, account payable, accrued expenses, etc. The liabilities are credited with an increase.. 

The equity includes the cash investment or withdrawal by owner. It increases with investment and profits and decrease with withdrawal or losses. 

 

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