Accounting Review Part 4*

Front

A business owned by one person.

Back

proprietorship

Front

Financial rights to the assets of a business.

Back

equities

Front

The difference between the increases and decreases in an account.

Back

account balance

Front

Is detailed information about changes in owner’s equity needed by owners and managers to make sound business decisions?

Back

True

Front

A withdrawal is an expense.

Back

False

Front

When an owner withdraws cash from the business, the transaction affects both assets and owner’s equity.

Back

True

Front

The process of planning, recording, analyzing, and interpreting financial information.

Back

Accounting

Front

Assets taken from the business for the owner’s personal use.

Back

withdrawals

Front

Financial reports that summarize the financial condition and operations of a business.

Back

financial statements

Front

When a company pays insurance premiums in advance to an insurer, it records the payment as a liability because the insurer owes future coverage.

Back

False