Accounting 1 Quarterly Exam Review

Front

Recording and reporting a business's financial information separately from the owner's financial information is an application of the accounting concept ____.

Back

Business Entity

Front

The amount remaining after the value of all liabilities is subtracted from the value of all assets is ____.

Back

owner's equity

Front

The accounting equation is most often stated as ________.

Back

Assets = Liabilities + Owner's Equity

Front

In the United States, recording business transactions in dollars is an application of the accounting concept

Back

Unit of Measurement

Front

The account used to summarize the owner's equity in a business is ____.

Back

capital

Front

If cash is increased by $2,000.00 when the owner invests cash in the business, then capital is ____.

Back

increased by $2,000.00

Front

When a transaction changes both sides of the accounting equation, ____.

Back

an increase on the left side must equal an increase on the right side

Front

When a business pays cash for supplies, ____.

Back

assets increase and assets decrease

Front

When cash is decreased and supplies are increased by an equal amount, ____.

Back

liabilities and capital are not changed

Front

When a transaction changes only one side of the equation, if one account is increased, the other account on the same side must ____.

Back

decrease