Accounting 1A Final Exam

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

• Accounting system

• Accounting

• Accounting records

Organized Summaries of a business’ financial activates are called:

• Accounting System

• Accounting

• Accounting Records

This is a business that does something for a fee:

• service business

• proprietorship

• merchandising business

The Accounting Equation is:

• Assets + Liabilities = Owner’s Equity

• Assets + Owner’s Equity = Liabilities

• Assets = Liabilities + Owner’s Equity

Which account is the most liquid?

• PPI

• Accounts Payable

• Expenses

Which account is most liquid?

• Cash

• Supplies

• Capital

The financial rights to the assets of a business are called:

• Assets

• Equities

• Liability

The principles of right and wrong that guide an individual in making decisions:

• Ethics

• Decisions

• Family

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

• Withdrawal

• Exchange

• Transaction

What do we call a record that summarizes all the information pertaining to a single item in the accounting equation?

• Account title

• Account balance

• Account