Accounting I: Chapter I/II Vocabulary & Concepts Quiz

What is the process of planning, recording, analyzing, and interpreting financial information called?

• Accounting

• Auditing

• Budgeting

• Bookkeeping

What is a planned process designed to compile financial data and summarize the results in accounting records and reports called?

• Accounting System

• Financial Statement

• Audit Trail

• Budget Plan

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

• Financial Statements

• Bank Statements

• Tax Returns

• Invoices

What is a formal report that shows what an individual owns, what an individual owes, and the difference between the two called?

• Net Worth Statement

• Income Statement

• Cash Flow Statement

• Budget Plan

What is anything of value that is owned called?

• Asset

• Liability

• Expense

• Revenue

What is an amount owed called?

• Liability

• Asset

• Revenue

• Equity

What is the difference between personal assets and personal liabilities called?

• Personal Net Worth

• Personal Income

• Personal Expenses

• Personal Allowance

What is the difference between assets and liabilities called?

• Equity

• Revenue

• Depreciation

• Dividend

What are the principals of right and wrong that guide an individual in making decisions called?

• Ethics

• Habits

• Opinions

• Emotions

What is the use of ethics in making business decisions called?

• Business Ethics

• Corporate Finance

• Market Analysis

• Strategic Planning