Accounting Equation and Common Accounts

Type the accounting equation...

Assets include... (check all that apply)

• Cash

• The owner's capital account

• Prepaid Insurance

• Money owed to other businesses (Accounts Payable)

• Supplies

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

• organizing.

• accounting.

• profiting.

• formatting.

A business that performs an activity for a fee is called a

• proprietorship

• corporation

• service business

• online business

A business owned by one person is called a

• proprietorship

• corporation

• partnership

• common-law business

Anything of value that is owned is called a(n)

• expense

• asset

• liability

• possession

Financial rights to the assets of a business are called liens.

• True

• False

The amount remaining after the value of all liabilities is subtracted from the value of all assets is called

• profit

• loss

• owner's equity

• account balance

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

• deposit

• withdrawal

• deal

• transaction

A sale for which cash will be received at a later date is called accounts payable

• True

• False