Accounting I Final Test - Part 1

Anything of value that is owned

• Asset

• Liability

• Owner's Equity

A record that summarizes all the transactions pertaining to a single item in the accounting equation

• Journal

• Account

• Chart of accounts

A business owned by one person

• Proprietorship

• Sole proprietorship

• Partnership

• Corporation

An amount owed (debt)

• Asset

• Liability

• Expense

The cost of goods or services used to operate a business

• Expense

• Liability

• Revenue

The difference between the increases and decreases in an account

• Accounting system

• Net income

• Account balance

An increase in equity resulting from the sale of goods or services

• Owner's Equity

• Revenue

• Assets

Ethics are the principles of right and wrong that guide an individual in making decisions

• True

• False

A debtor is a person or business to whom a liability is owed

• True

• False

Answer explanation

That's a creditor! The debtor is the person or business that owes the money.

Finish the accounting equation: Assets - Liabilities = ________________

• Owner's Equity

• Revenue

• Net income