Accounting Review

What is Accounting?

• Keeping financial records for a business

• Proving that correct procedures are followed

• Evaluating employees on performance

• Following business laws in the workplace

Which one of these is the correct Accounting Equation?

• Liabilities = Assets + Capital

• Capital = Assets + Liabilities

• Assets = Liabilities - Capital

• Assets = Liabilities + Capital

What is the word to describe anything that has value in a business?

• Capital

• Liability

• Asset

• Revenue

What word describes people/businesses that you owe money to?

• Asset

• Liability

• Capital

• Revenue

The owner's share of the business is referred to as:

• Asset

• Liability

• Capital

• Revenue

Which classification would this account have: EQUIPMENT

• Revenue

• Liability

• Asset

• Capital

Classify this account: VERIZON WIRELESS PHONE COMPANY

• Asset

• Liability

• Capital

• Revenue

Classify this account: Jacob Romo, Owner's Equity

• Asset

• Liability

• Capital

• Revenue

Liabilities = 1000. Capital = 3000. What would Assets equal?

• 2000

• 4000

• 5000

• 1000

Assets = 10,000. Liabilities = 3,000. What would be the owner's share?

• 30,000

• 4,000

• 13,000

• 7,000