Unit 1 Accounting Review

Any accounting period of twelve months' duration is usually referred to as a _____.

• fiscal year

• calendar year

• physical year

• operational year

Jill started her business by investing $25,000 in cash. This transaction would:

• Decrease assets & decrease liabilities

• Increase one asset and decrease another asset

• Increase assets and increase liabilities

• Increase assets and increase capital

The accounting equation is:

• liabilities - assets = owner's equity

• revenue = net income + expenses

• revenue - expenses = net income

• assets = liabilities + owner's equity

GAAP stands for ____

• generally achievable accounting practices

• generally accepted accounting principles

• genuine academic accounting practices

• genuine accounting auditing principles

Examining a transaction or event to determine its effect on the business is

• recording

• classifying

• interpreting

• analyzing

Who defined accounting as, "The language of business"?

• Warren Buffet

• Steve Jobs

• Jeff Bezos

• Jordan Belfort

A business that purchases a product from another business to sell to customers is called:

• Service business

• Merchandising business

• Manufacturing business

• Nonprofit business

What is the acronym for the normal debit balance accounts?

• CDE

• ADE

• CRL

• ARL

The acronym for the normal credit balance accounts is:

• ARL

• CDE

• ADE

• CRL

An asset account is increased with a: ​

• Debit
• Credit