Accounting #1

Accounting is a process of recording, classifying, summarising and interpreting business activities for

• performance evaluation.

• decision making.

• disburse salary.

• investment.

Followings are internal users of accounting information EXCEPT

• manager

• owner

• creditor

• employee

Sole proprietorship is a business owned and managed by

• two to twenty individuals

• one individual

• unlimited members

• one to fifty individuals

Complete the following statement .Assets=....

• Owners equity +liabilities

• Bank + Owners equity

• Liabilities +Bank

A __________ amount will appear on the left side of a T-account.

• Credit

• Debit

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

A decrease in owner's equity resulting from the operation of a business

• account
• capital
• asset
• expense

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