1. State the equity equation.
2. Which account represents the beginning equity figure?
3. In which accounts are changes to equity recorded?
4. How do drawings affect the calculations of net income?
5. What will happen to equity if drawings are greater than net income?
6. Most of the time, a net loss will mean equity has decreased, even if the drawings are zero. True or false?
7. Give an example of when equity would increase if there was a net loss.