1.
Accounting equation is: Assets = Liabilities +
.
2.
The excess of assets over liabilities is
.
3.
The obligations of the business to creditors are called
.
4.
When an expense is paid, the amounts of two items in the accounting equation are reduced. These are
.
5.
Increase in one asset either reduces another asset or increases a
.
6.
Decrease in one asset either increases
or decreases a liability.
7.
In accounting equation, the discount received is
to owner's equity.
8.
Assets - Owner's equity =
.
9.
= Liabilities + Owner's equity.
10.
Owner's equity/capital is the obligation of the business to its
.
11.
The owner takes some cash from the business for his personal use. The affected items of the accounting equation are
.
12.
If total assets are $75,000 and total liabilities are $25,000, the amount of owner's equity is
.