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Acct. Ch 1 Vocabulary

Total questions: 21

Worksheet time: 13mins

Name
Class
Date
1.

The accounting equation is stated as 

a)

Assets = Liabilities - Owner's Equity

b)

Assets = Liabilities -+ Owner's Equity

c)

Assets = Liabilities x Owner's Equity

d)

Assets = Liabilities ÷\div     Owner's Equity

2.

Calculated by subtracting the businesses liabilities from the total value of their assets

a)

Assets

b)

Liabilities

c)

Owner's Equity

d)

Expenses

e)

Revenue

3.

Things of value owned by a business are classified as

a)

Assets

b)

Liabilities

c)

Owner's Equity

d)

Expenses

e)

Revenue

4.

Under which classification is the account, "sales," listed?

a)

Assets

b)

Liabilities

c)

Owner's Equity

d)

Expenses

e)

Revenue

5.

Under which classification would accounts tracking things like rent, utilities (normal costs of doing business) be located?

a)

Assets

b)

Liabilities

c)

Owner's Equity

d)

Expenses

e)

Revenue

6.

Under which classification would an account for tracking "sales" (money coming into the business) be located?

a)

Assets

b)

Liabilities

c)

Owner's Equity

d)

Expenses

e)

Revenue

7.

Under which classification would an account for tracking "a debt" be located?

a)

Assets

b)

Liabilities

c)

Owner's Equity

d)

Expenses

e)

Revenue

8.

Under which classification would the owner's "capital" account be located?

a)

Assets

b)

Liabilities

c)

Owner's Equity

d)

Expenses

e)

Revenue

9.

_________ is the process of planning, recording, analyzing, and interpreting financial information

a)

Accounting System

b)

Account Title

c)

Accounting

d)

Account Balance

10.

_________ is a planned process designed to gather financial information.

a)

Accounting System

b)

Account Title

c)

Accounting

d)

Account Balance

11.

The difference between personal assets and personal liabilities is called personal ___ _____.

(a)  

12.

Amounts owed to others are known as

a)

Assets

b)

Expenses

c)

Owner's Equity

d)

Liabilities

13.

The principles of right and wrong that guide an individual in making decisions are called (a)   .

14.

The principles of right and wrong that guide a business in making decisions are called ________ ______ .

(a)  

15.

(a)   defined as the difference between assets and liabilities.

16.

A formal document that describes the nature of a business is called a

a)

Financial Report

b)

Accounting Equation

c)

Business Plan

d)

Proprietorship

17.

GAAP concept/rule that states the business activities will be recorded in dollars.

a)

Unit of Measurement

b)

Business Entity

c)

Realization of Revenue

d)

Consistent Reporting

18.

GAAP concept/rule that is applied when the sale of goods or services are recorded when they are sold.

a)

Unit of Measurement

b)

Business Entity

c)

Realization of Revenue

d)

Consistent Reporting

19.

GAAP concept/rule that insists on the business owner's finances are kept separate from personal finances.

a)

Unit of Measurement

b)

Business Entity

c)

Realization of Revenue

d)

Consistent Reporting

20.

Assets taken from the business for the owner's personal use are called

(a)  

21.

Things of value owned by a business or individual are known as

a)

Assets

b)

Liabilities

c)

Owner's Equity

d)

Expenses

e)

Revenue