Accounting Vocab

An accounting tool that lists assets and liabilities

• Balance Sheet

• Money

• Opportunity cost

• Economics

The excess of the asset value over and above the amount of the liability; total assets minus total liabilities

• Excess

• Trade - Off

• Net Worth

• Abundance

What is the primary purpose of accounting in social studies?

• To track financial transactions

• To study historical events

• To analyze social behavior

• To create art

Which term describes the financial statement that shows a company's assets, liabilities, and equity?

• Income Statement

• Balance Sheet

• Cash Flow Statement

• Budget

What is the term for the money a company owes to its creditors?

• Assets

• Equity

• Liabilities

• Revenue

Which accounting principle requires that expenses be matched with revenues?

• Revenue Recognition Principle

• Matching Principle

• Cost Principle

• Full Disclosure Principle

What is the term for the systematic recording of financial transactions?

• Auditing

• Bookkeeping

• Budgeting

• Forecasting

Which term refers to the owner's claim on the assets of a business?

• Liabilities

• Equity

• Revenue

• Expenses

What is the term for the financial gain obtained from business activities?

• Revenue

• Expense

• Liability

• Equity

Which document is used to summarize a company's financial performance over a specific period?

• Balance Sheet

• Income Statement

• Cash Flow Statement

• Ledger