Accty - Ch. 1 Review

The amount in an account

• account title

• account balance

• balance sheet

• account

Anything of value that is owned

• liability

• equity

• asset

• owner's equity

Financial rights to the assets of a business

• capital

• owner's equity

• equities

• asset

The accounting equation is:

Assets + Liabilities = Owner's Equity

• True

• False

An amount owed by a business

• capital

• owner's equity

• liability

• asset

A planned process for providing financial information that will be useful to management.

• accounting system

• accounting equation

• accounting

• accounting record

Planning, recording, analyzing, and interpreting financial information

• accounting system

• accounting records

• marketing

• accounting

In a transaction that deals with 2 assets, there must be a(n) _______ and a(n) _______ to keep the accounting equation balanced.

• increase; increase

• increase; decrease

• decrease; decrease

If you buys supplies on account, what 2 accounts will you deal with?

• supplies & liability

• cash & owner's equity

• supplies & accounts payable

• insurance & accounts payable

You received cash from the owner as an investment. What 2 accounts are you dealing with?

• cash & accounts payable

• cash & owner's equity

• supplies & accounts payable

• cash & capital