Accounting Ch. 2 and Review

An increase in owner's equity resulting from the operation of a business is called

• revenue

• expense

• asset

• liability

The recording of debit and credit parts of a transaction is called

• double-entry accounting

• journal

• source document

• general journal

A decrease in the owner's equity resulting from the operation of a business is called

• expense

• asset

• liability

• revenue

What is it called when one records a transaction in a journal?

• journalizing

• inputing

• entering

• recording

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the:

• Balance Sheet
• Income Statement
• Statement of Cash Flows
• None of These

The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the:

• Balance Sheet
• Income Statement
• Statement of Cash Flows
• Cash Statement

Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as __________.

• Assets
• Liabilities
• Owner Equity
• Equity

Assets are usually reported on the balance sheet at which amount?

• Cost
• Current Market Value
• Expected Selling Price
• None of These

Obligations (amounts owed) are reported on the balance sheet and are referred to as __________.

• Assets
• Liabilities
• Debt
• Owner Equity

Unearned Revenues is what type of account?

• Asset
• Liability
• Stockholders' Equity