Accounting Chapter 1 Quiz

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

• organizing.

• accounting.

• profiting.

• formatting.

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

• summaries.

• records.

• statements.

• outputs.

A business that performs an activity for a fee is called a

• proprietorship.

• corporation.

• service business.

• online business.

A business owned by one person is called a

• proprietorship.

• corporation.

• partnership.

• common-law business.

Anything of value that is owned is called a(n)

• expense.

• asset.

• liability.

• possession.

Financial rights to the assets of a business are called liens.

• True

• False

The amount remaining after the value of all liabilities is subtracted from the value of all assets is called

• profit.

• loss.

• owner's equity.

• account balance.

A business activity that changes assets, liabilities, or owner's equity is called a

• deposit.

• withdrawal.

• deal.

• transaction.

Each part of the accounting equation consists of one or more accounts.

• True

• False

An account balance is a term applied when both sides of the accounting equation are equal, or, in balance.

• True

• False