Ch.3 Accounting Vocab.

1)      A(n) _______ is an economic event that causes a change in assets, liabilities, or owner’s equity.

• A.      Business transaction

• A.      Equity

• A.      Expenses

• A.      On account

   The _______is Assets = liabilities + Owner’s equity. 

• accounting equation

• A.      Business transaction

• A.      Expenses

The owner’s claim to the total assets of the business are called _______     Owner’s equity

• Owner’s equity

• Property

• Liabilities

A(n) _______ is property or item of value owned by a business

• Asset

• Business

• accounts payable

  Business

______ are the creditor’s claims to assets of the business

• Property

• revenue

• liabilites

_______ is anything of value that is owned or controlled

• Property

• Asset

• Owner’s equity

The increases or decreases in a specific item caused by business transaction are recorded in a(n) _________

• Account

• Equity

• Expenses

Buying ______ is the same as buying on credit.

• on account

• accounts payable

• Equity

______ is income earned from the sale of goods and services.

• Revenue

• Asset

• Asset

  Equity

The cost of goods and service used to operate a business are ______

• Expenses

• Capital

• payable

  Capital