Basic Accounting Principles

Assets taken out of a business for the owner's personal use

• capital
• withdrawals
• equities
• revenue

Planning, recording, analyzing, and interpreting financial information

• accounting
• ethics
• transaction
• revenue

Amount owed by a business

• liability
• asset
• capital
• account

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

• transaction
• expense
• revenue
• sale on account

Anything of value that is owned

• account
• asset
• withdrawal
• expense

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

• account
• expense
• capital
• revenue

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

• financial statements
• ethics
• withdrawals
• equities

Revenues minus expenses equals _____________________.

• Profit

• Overhead

• Income

• None of the above

Anything of value that is owned by the company (such as cash, accounts receivables, vehicles, etc.) are reported on the balance sheet and are referred to as _______________.

• assets
• liabilities
• profit
• income

The basic accounting equation is Assets=Liabilities + _______________________.

• Income
• Owner's Equity
• Expenses
• Profit