Accounting: Chapter 1 Quiz

Preparing financial statements takes place in the ____________phase of accounting.

• Recording
• Interpreting
• Summarizing
• Service business 

Planning, recording, analyzing, and interpreting financial information

• accounting
• financial statements
• sale on account
• transaction

A business activity that changes assets, liabilities, or owner's equity

• accounting equation
• transaction
• equities
• asset

An entrepreneur is

• a person who organizes and prepares a business plan
• a person that dreams of one day starting his/her own business
• A person that works for a big accounting firm like KPMG
• a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so

A planned process for providing financial information that will be useful to management

• accounting system
• accounting record
• financial statements
• sale on account

The principles of right & wrong that guide an individual in making decisions

• Society
• liability
• Ethics
• equities

A business that performs an activity for a fee

• Merchandising business
• manufacturing business
• goods producing industry
• Service business 

Anything of value that is OWNED

• asset
• liability
• revenue
• equities

Which of the following business types is considered to have a life of its own?

• Sole Proprietor
• Partnership
• Corporation
• Merchandising  

Financial reports that summarize the financial conditions and operations of a business

• financial statements
• accounting records
• accounting system
• sale on account