Accounting Chapter 1 Quiz

A formal report that shows what an individual owns, what an individual owes, and the difference between the two.

• Accounting System

• Net Worth Statement

• Financial Statements

• Liability

• Accounting

A planned process designed to compile financial data and summarize the results in accounting records and reports.

• Accounting

• Asset

• Accounting System

• Financial Statement

• Liability

An amount owed?

• Revenue

• Liability

• Asset

• Equity

• Expense

Anything of value that is owned.

• Equity

• Asset

• Liability

• Revenue

• Expense

Financial reports that summarize the financial condition and operations of a business.

• Financial Statements

• GAAP

• Accounting System

• Accounting

• Net Worth Statement

The difference between personal assets and personal liabilities.

• Asset

• Liability

• Personal Net Worth

• Equity

The process of planning, recording, analyzing, and interpreting financial information.

• Accounting

• Accounting System

• Financial Statements

Accounting is the language of business.

• True

• False

A creditor would favor a positive net worth.

• True

• False

The principles of right and wrong that guide an individual in making personal decisions is called business ethics.

• True

• False