Page 35 - Account for Ag - 2019
P. 35

CH 2]                             Accounting  Equation                                  2-11


                                                            Name:

                                                       QUESTIONS

                1.  What is the effect in accounting of the business unit concept.
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                2. What is "Proprietorship"?

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                3.  Define the following terms:
                  a.  asset-
                  b. liability-
                  c.  equity-
                  d. owner equity-

                4. Give the synonyms for "Equity"
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                5.  What is the fundamental accounting equation? Define its parts.
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                6.  When a business incurs a liability, what effect does it have on proprietorship? Explain your answer.

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                7.  Is it possible for a transaction to affect one asset item without affecting any other asset or equity?
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