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WorksheetsAcctg Ch 1 Vocab
Total questions: 47
Worksheet time: 27mins
Name
Class
Date
1.
The standards and rules that accountants follow while recording and reporting financial activities
a)
GAP
b)
GAAP
c)
CPA
2.
Financial reports that summarize the financial condition and operations of a business.
a)
accounting standards
b)
accounting system
c)
financial statements
d)
personal net worth
3.
A formal report that shows what an individual owns, what an individual owes, and the difference between the two.
a)
equity
b)
owner's equity
c)
personal net worth
d)
net worth statement
4.
A planned process designed to compile financial data and summarize the results in accounting records and reports.
a)
accounting
b)
accounting system
c)
financial statements
d)
business plan
5.
The process of planning, recording, analyzing, and interpreting financial information.
a)
accounting
b)
accounting system
c)
financial statements
d)
ethics
6.
Anything of value that is owned.
a)
Liability
b)
Equity
c)
Asset
d)
Investment
7.
The use of ethics in making business decisions.
a)
Clipper Pride
b)
Values
c)
Business Ethics
d)
GAAP
8.
A business that performs an activity for a fee.
a)
Merchandising business
b)
Proprietorship
c)
Service Business
d)
Performance Based Business
9.
A formal written document that describes the nature of a business and how it will operate.
a)
business application
b)
business venture
c)
financial statement
d)
business plan
10.
The equation showing the relationship among assets, liabilities, and owner's equity.
a)
accounting equation
b)
account balance
c)
equities
d)
capital account
11.
Financial rights to the assets of a business.
a)
liabilities
b)
accounting equation
c)
equities
d)
owner's equity
12.
The amount remaining after the value of all liabilities is subtracted from the value of all assets.
a)
equities
b)
owner's equity
c)
accounting equation
d)
account balance
13.
Assets = Liabilities + Owner's Equity is known as the
a)
accounting principle
b)
accounting rule
c)
accounting equation
d)
account title
14.
An account used to summarize the owner's equity in a business.
a)
capital account
b)
account balance
c)
equity account
d)
equities
15.
A record that summarizes all the transactions pertaining to a single item in the accounting equation.
a)
account
b)
account name
c)
financial statement
16.
The difference between the increases and decreases in an account.
a)
equity
b)
accounting equation
c)
account balance
d)
transaction
17.
An amount owed.
a)
Liability
b)
Asset
c)
Equity
d)
Account
18.
The principles of right and wrong that guide an individual in making decisions.
a)
Business plan
b)
GAAP
c)
Ethics
d)
Equities
19.
The name given to an account.
a)
account classification
b)
account title
c)
account identification
d)
chart of accounts
20.
Any business activity that changes assets, liabilities, or owner's equity.
a)
accounting equation
b)
transaction
c)
account balance
d)
service
21.
A business owned by one person.
a)
Partnership
b)
Proprietorship
c)
Corporation
d)
Service Business
22.
A person or business to whom a liability is owed
a)
creditor
b)
owner
c)
bank
d)
customer
23.
An increase in equity resulting from the sale of goods or services
a)
Expense
b)
Revenue
c)
Capital
d)
Withdrawal
24.
A sale for which payment will be received at a later date
a)
account payable
b)
bought on account
c)
sale on account
d)
account receivable
25.
Account receivable is what classification of account?
a)
Asset
b)
Liability
c)
Owner's Equity
d)
Revenue
26.
Account Payable is what classification of account?
a)
Asset
b)
Liability
c)
Owner's Equity
d)
Expense
27.
Which of the following does NOT directly change the owner's equity?
a)
Withdrawal
b)
Liability
c)
Expense
d)
Revenue
28.
The cost of goods or services used to operate a business
a)
Liability
b)
Revenue
c)
Withdrawal
d)
Expense
29.
Assets taken from the business for the owner's personal use
a)
Expense
b)
Liability
c)
Withdrawal
d)
Capital
30.
Accounting is the language of business.
a)
True
b)
False
31.
A creditor would favor a positive net worth.
a)
True
b)
False
32.
The principles of right and wrong that guide an individual in making personal decisions is called business ethics.
a)
True
b)
False
33.
Keeping personal and business records separate is an application of the business entity concept.
a)
True
b)
False
34.
Generally Accepted Accounting Principles, GAAP, allow for flexibility in reporting.
a)
True
b)
False
35.
Recording business costs in terms of hours required to complete projects is an application of the unit of measurement concept.
a)
True
b)
False
36.
The relationship among assets, liabilities, and owner's equity can be written as an equation.
a)
True
b)
False
37.
The accounting equation does not need to be in balance to be correct.
a)
True
b)
False
38.
Assets such as cash and supplies have value because they can be used to acquire other assets or be used to operate a business.
a)
True
b)
False
39.
When a company pays insurance premiums in advance to an insurer, it records the payment as a liability because the insurer owes future coverage.
a)
True
b)
False
40.
When items are bought and paid for later, this is referred to as buying on account.
a)
True
b)
False
41.
When cash is paid on account, a liability is increased.
a)
True
b)
False
42.
When cash is received from a sale, the total amount of both assets and owner's equity is increased.
a)
True
b)
False
43.
The accounting concept Realization of Revenue is applied when revenue is recorded at the time goods or services are sold.
a)
True
b)
False
44.
When cash is paid for expenses, the business has more equity.
a)
True
b)
False
45.
If two amounts are recorded on the same side of the accounting equation, the equation will no longer be in balance.
a)
True
b)
False
46.
A withdrawal decreases owner's equity.
a)
True
b)
False
47.
When a company receives cash from a customer for a prior sale, the transaction increases the cash account balance and increases the accounts receivable balance.
a)
True
b)
False
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