Introduction to Accounting Concepts

What is the primary goal of accounting?

• To communicate financial information

• To create financial statements

• To file tax returns

• To manage business operations.

What is the course 'Accounting I' designed to teach?

• How to become a CPA

• Basic accounting language

• Advanced financial strategies

• Stock market analysis

What is the concept of 'double entry' in accounting?

• Recording transactions twice

• Two sides of a transaction must be equal

• Entering data in two books

• Double-checking entries.

What is the net worth of a business also known as?

• Assets

• Liabilities

• Owner’s Equity

• Revenue

What type of account is 'Accounts Payable'?

• Asset

• Liability

• Revenue

• Expense

What type of account is 'Capital'?

• Asset

• Liability

• Owner's Equity

• Revenue

Which account type includes 'Notes Payable'?

• Assets

• Liabilities

• Revenue

• Expenses

Which of the following is an example of a liability? A) Building B) Mortgage Payable C) Supplies D) Revenue.

• Building

• Mortgage Payable

• Supplies

• Revenue

What is always considered an asset?

• Anything receivable

• Anything payable

• Owner's equity

• Capital

What is an example of an account that has a normal credit balance?

• Cash

• Accounts Payable/Jones Supply

• Prepaid Insurance

• Supplies