Accounting Ch 3 Review

What is this called?

Assets = Liabilities + Owner’s Equity

• equities

• business transaction

• financial capital

• accounting equation

A(n)___ is an economic event that causes a change in assets, liabilities, or owner’s equity

• equity

• account

• business transaction

• creditor

Charlotte started a small business and invested some money into it. The money she invested, which represents her claim (ownership) to the total assets of the business, is called ___

• owner's equity

• liabilities

• assets

• accounts payable

A(n)____ is any property or item of value owned by a business

• liability

• equity

• asset

• account

____are the creditor’s claims to the assets of the business.

• liabilities

• assets

• equities

• accounts

____ is anything of value that is owned or controlled.

• accounting equation

• business transaction

• liability

• property

The increases or decreases in a specific item caused by business transactions are recorded in a(n) ____

• accounting equation

• account

• property

• creditor

Buying ___ is the same as buying on credit.

• on account

• property

• assets

• equities

___ is income earned from the sale of goods and services.

• expenses

• profit

• capital

• revenue

The costs of goods and services used to operate a business are ___

• revenues

• profits

• expenses

• liabilities