Accounting Terms Review 1-1

What is accounting?

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

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

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

• Anything of value that is owned.

What is equity?

• The difference between assets and liabilities.

• An amount owed.

• The principles of right and wrong that guide an individual in making decisions.

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

What is the accounting system?

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

  
  

• The difference between personal assets and personal liabilities.

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

  
  

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

What are financial statements?

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

  
  

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

• The use of ethics in making business decisions.

• The difference between personal assets and personal liabilities.

What is an asset?

• An amount owed

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

• The principles of right and wrong that guide an individual in making decisions.

• Anything of value that is owned.

  
  

What is a net worth statement?

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

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

• The difference between assets and liabilities.

• Anything of value that is owned.

  
  

What is liability?

• The principles of right and wrong that guide an individual in making decisions.

• Anything of value that is owned.

• An amount owed.

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

What is personal net worth?

• The difference between assets and liabilities.

• The use of ethics in making business decisions.

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

• The difference between personal assets and personal liabilities.

What are business ethics?

• The difference between assets and liabilities.

• The use of ethics in making business decisions.

• The principles of right and wrong that guide an individual in making decisions.

• The difference between personal assets and personal liabilities.

What are ethics?

• The principles of right and wrong that guide an individual in making decisions.

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

• The use of ethics in making business decisions.

• The difference between personal assets and personal liabilities.