CHAPTER 3:
Section 3 Transactions That Affect Revenue, Expense, and Withdrawals by the Owner
1.
Income earned from the sale of goods or services is called
a.
a liability
b.
an expense
c.
revenue
d.
a revival
2.
The price paid for goods or services used to operate a business is called
a.
overhead
b.
an asset
c.
revenue
d.
an expense
3.
The affect of Revenue on Owner`s Equity is to
a.
increase it
b.
decrease it
c.
have no effect
d.
make it balance
4.
When an owner takes cash or other assets from the business for personal use it is called
a.
cash allowance
b.
a withdrawal
c.
owner`s claim
d.
capital reduction
5.
Each of the following is an expense except a payment for
a.
advertising
b.
monthly rent
c.
utility bills
d.
equipment