Accounting 1/Chapter 1

A financial statement that reports assets, liabilities & owner's equity on a specific date.

• balance sheet
• accounting records
• accounting equation
• account balance

Business activities that change the amounts in the accounting equation.

• assets 
• transactions
  
• accounts payable
• equities

What is a account balance?

• the owner's investment
• the amount in an account
• a business entity
• the sum of all assets

Anything of value that is owned

• owner's equity
• liabilities
• assets
• unit of measurement

Antonym of a proprietorship

• sole proprietorship
• corporation
  

All of the following are examples of a service business except 

• nail salon
• car wash
• plumbing company
• a department store

What is owner's equity?

• liabilities
• the amount owed by a company
• The amount remaining after liabilities are subtracted from the  assets
• the relationship among assets, liabilities & owner's equity

An equation showing the relationship among assets, liabilities & owner's equity

• the accounting equation
  
• owner's equity
• the accounting system

What are equities?

• Financial rights to the assets of a business
  
• Anything of value that is owned
• An amount owed by a business

The standard accounting equation is

• A=L+OE
• A+L+OE
• L=A+OE