Definitions

Assets

Liabilities

Owners' Equity

Liquidity

Retained Earnings

Classified Balance Sheet

Accounting Equation

Current assets

Long term assets

Current liabilities

Long term liabilities

Questions

How are assets listed on the balance sheet?

What are the two components of owners' equity?

How are the assets and liabilities valued on the balance sheet?

When a company rents a warehouse by paying for the first six month's rent in advance, the effect on the accounting equation on the day of payment would be to adjust which accounts?

When an investor pays cash into a business to become a part owner, the effect on the accounting equation for the business will be to adjust which accounts?

When a company borrows money from a bank to be repaid in over time, the effect on the accounting equation for the company will be to adjust which accounts?