1.1 Accounting Review

A business that provides a physical good to consumers is a service business.

• TRUE

• FALSE

The business structure where the business is owned by 1 person is known as a(n)

• Entrepreneur

• Partner

• Corporation

• Proprietorship

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

• Accounting

• Proprietorship

• Financial Statement

• Equity

Anything of value owned is called a(n)

• Asset

• Liability

• Equity

• Owner's Equity

An amount owed by a business is called a(n)

• Asset

• Liability

• Equity

• Owner's Equity

Equity of the owner is called

• Asset

• Liability

• Equity

• Owner's Equity

The Accounting Equation is

• Assets

  • +

  • Liabilities

  • =

  • Owner's Equity

• Assets

  • -

  • Liabilities

  • =

    • Owner's Equity

• Assets

  =

  Liabilities

  • +

  • Owner's Equity

• Assets

  =

  Liabilities

  • -

  • Owner's Equity

The accounting equation must always be in balance

• TRUE

• FALSE

Assets = Liabilities + Owner's Equity

200 = _____ + 80

How much is in Liabilities?

What is the language of business?