Response to the following questions:
1. Define assets, liabilities, owner's equity, revenues, and expenses.
2. Explain the separate entity concept.
3. How do Accounts Payable and Accounts Receivable differ?
4. Describe two ways to increase owner's equity and two ways to decrease owner's equity.
5. What is the effect on the fundamental accounting equation if supplies are purchased on account? How will the fundamental accounting equation change if supplies are purchased with cash? Explain how this purchase will or will not change the owner's equity.
6. Define chart of accounts and identify the categories of accounts.