Accounting Test

credits on the

• left
• right

The basic accounting equation is Assets=Liabilities + _______________________.

• Income
• Owner's Equity
• Expenses
• Profit

Anything of value that is owned by the company (such as cash, accounts receivables, vehicles, etc.) are reported on the balance sheet and are referred to as _______________.

• assets
• liabilities
• profit
• income

Amount owed by a business

• liability

• asset

• capital

• account

It is the art of analyzing financial transactions and economic events, recording them, classifying them into accounts, summarizing them, reporting, and interpreting the results.

• Bookkeeping    

• Journalizing

• Accounting

• Auditing

What is the formula for calculating PROFIT?

• Revenue- Expenses

• Revenue/ Expenses

• Revenue*Expenses

• Revenue+ Expenses

________ is when revenue exceed expenses

• net income

• net loss

• liabilities

• assets

A _______ is a time stamped commercial document that itemizes and records a transaction between a buyer and a seller

• financial record

• invoice

• depreciation

• asset

the gradual loss of an asset's value due to age and wear

• capital

• liability

• depreciation

• fixed asset

the value of the owner's investment in the business after subtracting liabilities from assets

• depreciation

• capital

• credit

• debit