The Accounting Equation Section 1

Planning, recording, analyzing, and interpreting financial information is called

• organizing.

• accounting.

• profiting.

• formatting.

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

• summaries

• records

• statements

• outputs

A business that performs an activity for a fee is called a

• proprietorship

• corporation

• service business

• online business

A business owned by one person is called a

• proprietorship

• corporation

• partnership

• common-law business

Anything of value that is owned is called a(n)

• expense

• asset

• liability

• possession

Financial rights to the assets of a business are called liens.

• True

• False

The amount remaining after the value of all liabilities is subtracted from the value of all assets is called

• profit

• loss

• owner's equity

• account balance

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

• deposit

• withdrawal

• deal

• transaction

Each part of the accounting equation consists of one or more accounts

• True

• False

Tags

CCSS.HSA.CED.A.2

An account balance is a term applied when both sides of the accounting equation are equal, or, in balance

• True

• False

Tags

CCSS.6.NS.C.6A