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WorksheetsAcct. Ch 1 Vocabulary
Total questions: 21
Worksheet time: 13mins
The accounting equation is stated as
Assets = Liabilities - Owner's Equity
Assets = Liabilities -+ Owner's Equity
Assets = Liabilities x Owner's Equity
Assets = Liabilities ÷ Owner's Equity
Calculated by subtracting the businesses liabilities from the total value of their assets
Assets
Liabilities
Owner's Equity
Expenses
Revenue
Things of value owned by a business are classified as
Assets
Liabilities
Owner's Equity
Expenses
Revenue
Under which classification is the account, "sales," listed?
Assets
Liabilities
Owner's Equity
Expenses
Revenue
Under which classification would accounts tracking things like rent, utilities (normal costs of doing business) be located?
Assets
Liabilities
Owner's Equity
Expenses
Revenue
Under which classification would an account for tracking "sales" (money coming into the business) be located?
Assets
Liabilities
Owner's Equity
Expenses
Revenue
Under which classification would an account for tracking "a debt" be located?
Assets
Liabilities
Owner's Equity
Expenses
Revenue
Under which classification would the owner's "capital" account be located?
Assets
Liabilities
Owner's Equity
Expenses
Revenue
_________ is the process of planning, recording, analyzing, and interpreting financial information
Accounting System
Account Title
Accounting
Account Balance
_________ is a planned process designed to gather financial information.
Accounting System
Account Title
Accounting
Account Balance
The difference between personal assets and personal liabilities is called personal ___ _____.
(a)
Amounts owed to others are known as
Assets
Expenses
Owner's Equity
Liabilities
The principles of right and wrong that guide an individual in making decisions are called (a) .
The principles of right and wrong that guide a business in making decisions are called ________ ______ .
(a)
(a) defined as the difference between assets and liabilities.
A formal document that describes the nature of a business is called a
Financial Report
Accounting Equation
Business Plan
Proprietorship
GAAP concept/rule that states the business activities will be recorded in dollars.
Unit of Measurement
Business Entity
Realization of Revenue
Consistent Reporting
GAAP concept/rule that is applied when the sale of goods or services are recorded when they are sold.
Unit of Measurement
Business Entity
Realization of Revenue
Consistent Reporting
GAAP concept/rule that insists on the business owner's finances are kept separate from personal finances.
Unit of Measurement
Business Entity
Realization of Revenue
Consistent Reporting
Assets taken from the business for the owner's personal use are called
(a)
Things of value owned by a business or individual are known as
Assets
Liabilities
Owner's Equity
Expenses
Revenue
