The principle that states VR must always equal VPW.

Resources owned by the business such as cash and equipment.

Obligations or debts of the business.

The account that represents the owner’s investment in the business.

The equation that shows the relationship among Assets, Liabilities, and Equity.

The value gained when a business acquires something, such as supplies or equipment.  

 The value given up when a business pays with cash or other resources. 

What do we call the economic resource received by the business, such as merchandise or furniture? 

When cash is used to pay rent, what do we call the value parted with? 

When salaries are paid, what is the value received by the business? 

 The equation that states Assets = Liabilities + Equity. 

 The resources of the business such as cash, land, building, and supplies. 

 The debts or obligations of the business, such as accounts payable. 

The investment and residual interest of the owner in the business. 

The account title used when the owner withdraws money or property for personal use. 

Which of the following is an Asset?

 If a business borrows money from a bank, what is the effect?

Paying salaries decreases:

When services are rendered for cash:

When services are rendered on account:

Paying rent in cash affects:

The owner’s withdrawal of cash reduces:

Which is NOT equity?

If Assets = ₱80,000 and Liabilities = ₱30,000, Equity is:

If Assets = ₱150,000 and Equity = ₱90,000, Liabilities are:

If Assets decrease ₱5,000 and Liabilities decrease ₱5,000, Equity will:

Which equation is correct?

When equipment are bought for cash:

Owner invested ₱40,000 cash. Show the effect on Assets, Liabilities, and Equity.

Paid ₱1,000 for salaries. Show the effect.

Rendered services ₱6,000 cash. Show the effect.

Rendered services ₱6,000 cash. Show the effect.