Accounting I: Chapter 1 Test - Part I

Financial rights to the assets of a business are called

• ethics

• withdrawals

• accounting records

• equities

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

A business owned by one person

• service business

• revenue

• expense

• proprietorship

A business that performs an activity for a fee

• proprietorship

• service business

• capital

• asset

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

• financial statements

• ethics

• withdrawals

• equities

An increase in owner's equity resulting from the operation of a business

• asset

• expense

• withdrawl

• revenue

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