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Accounting - Chapter 1 Exam Questions And
100% Correct Answers
accounting - ANSWER planning, recording, analyzing, and interpretingfinancial information
accounting system - ANSWER a planned process for providing financialinformation that will be useful to management
accounting records - ANSWER organized summaries of a business's financialactivities
financial statements - ANSWER financial reports that summarize the financialcondition and operations of a business
service business - ANSWER a business that performs an activity for a fee proprietorship - ANSWER a business owned by one person asset - ANSWER anything of value that is owned equities - ANSWER financial rights to the assets of a business liability - ANSWER an amount owed by a business
owners equity - ANSWER the amount remaining after the value of all liabilitiesis subtracted from the value of all assets
accounting equation - ANSWER an equation showing the relationship amongassets, liabilities, and owner's equity
ethics - ANSWER the principles of right and wrong that guide an individual inmaking decisions
business ethics - ANSWER the use of ethics in making business decisions transaction - ANSWER a business activity that changes assets, liabilities, orowner's equity
account - ANSWER a record summarizing all the information pertaining to asingle item in the accounting equation
account title - ANSWER the name given to an account account balance - ANSWER the amount in an account capital - ANSWER the account used to summarize the owner's equity in abusiness
revenue - ANSWER an increase in owner's equity resulting from the operationof a business
sale on account - ANSWER a sale for which cash will be received at a later date
