Exam 1: Accounting Concepts and Procedures

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The purchase of equipment with both cash and on account was recorded as only a credit purchase.Due to this error:

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When expenses are greater than revenue,net loss is the result.

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Which accounts are affected when the company buys supplies on account?

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If total assets are $30,000 and total liabilities are $18,000,Capital must equal:

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Creditors' claims against assets are called owner's equity.

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