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WorksheetsACC 101 Vocabulary
Total questions: 10
Worksheet time: 5mins
What is the purpose of accounting?
To provide financial statements to the decision makers
To provide good revenue to the decision makers
To provide information to the decision makers
To provide liability to the decision makers
What is the accounting equation?
Assets = Liabilities + Owners Equity
Liabilities = Assets + Owners Equity
Owners Equity = Assets + Liabilities
An Asset has which characteristics? Select all that apply.
Future economic benefit
Past economic benefit
Controlled by the entity
Arise from a past transaction
Business Entity Concept means:
Transactions associated with a business are an outflow of economic resources
Transactions associated with a business can be recorded together with those of its owners
Transactions associated with a business are outstanding or unpaid
Transactions associated with a business must be separately recorded from those of its owners
GAAP stands for:
Generally Associated Accounting Principles
Generally Accepted Accounting Principles
Generally Accepted Accounting Practices
Generally Associated Accounting Practices
Historical Cost Concept refers to:
An asset recorded at what it was paid
An liability to the business
Revenue to the business
An expense
Liability includes the following characteristics: (Select all that apply.)
Future economic benefit
Future economic harm/disadvantage
Arise from a past transaction or event
Responsibility of the entity
What are some other names for Financial Statements? (Select all that apply.)
Income Statement
Statement of Owners Equity
Balance Sheet
Statement of Cash Flow
What is the correct equation to determine Net Income?
What is Owner Equity?
Outflow of economic resources
Transactions associated with the business
The owners claim upon the business
The owners right to make all business decisions
