Accounting S1 Final Exam Review

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

• accounting

• ethics

• transaction

• revenue

The purpose of the accounting process is to provide information to:

• idividuals

• small businesses

• large corporations

• all of the answers are correct

A planned process for providing financial information that will be useful to management:

• accounting system

• ethics

• transaction

• capital

GAAP is a __________ accounting standard.

• required

• generally accepted

• used by all businesses

• banking

A business activity that changes assets, liabilities, or owner's equity:

• transaction

• expense

• revenue

• sale on account

Financial reports that summarize the financial condition and operations of a business are referred to as:

• financial statements

• ethics

• withdrawals

• equities

An equation showing the relationship among assets, liabilities and owner's equity is the:

• business equation

• quantitative equation

• annuity equation

• accounting equation

The accounting equation is stated as:

• Assets + Liabilities = Owner's Equity

• Assets + Owner's Equity = Liabilities

• Assets = Liabilities + Owner's Equity

• All of these answers are correct

An acceptable variation of the accounting equation is:

• Assets - Liabilities = Owner's Equity

• Assets + Owner's Equity = Liabilities

• Assets = Liabilities - Owner's Equity

• All of these answers are correct

The left side of a T account is the:

• debit side

• credit side

• normal balance side.

• equity side.