Accounting 1: Chp. 1

What is an example of an asset?

• Cash

• Short Term Loan

• Owner's Capital

• Accounts Payable

What is an example of a liability?

• Account payable to Ms. Shelman

• A house

• The sale of your car

• Account Receivable

Equity is also known as...

• An asset

• A liability

• Capital

• Stocks and bonds

The difference between personal assets and personal liabilities is...

• Owner's Equity

• Personal Net Worth

• Capital Account

• An Asset

_______ = Liabilities + Owner's Equity

Planning, recording, analyzing, and interpreting financial information is...

• Financing

• Project managing

• Auditing

• Accounting

Financial Statements are reports that show...

• the financial condition of business operations

• personal net worth

• the account balance

• if a business is ethical or not

A decrease in owner's equity resulting from the operation of a business is best known as a

• liability

• asset

• capital investment

• expense

Equity is defined as

• Financial rights to the assets of a business

• The amount of debt a business posses

• The salary a business owner can pull out each month

• The theory of everything in business being equal

Which of the following are classified as assets (hint: there are 3!)

• Accounts Receivable

• Accounts Payable

• Supplies

• Prepaid Insurance

• 3rd party Investment