| A | B |
|---|
| account | A record summarizing all the information pertaining to a single item in the accounting equation |
| account balance | The amount in an account |
| account title | The name given to an account |
| accounting | Planning, recording, analyzing, and interpreting financial information |
| accounting equation | An equation showing the relationship among assests, liabilities or owner's equity |
| accounting records | Organized summaries of a business's financial activities |
| accounting system | A planned process for providing financial information that will be useful to management |
| asset | Anything of value that is owned |
| business ethics | The use of ethics in making business decisions |
| capital | The account used to summarize the owner's equity in a business |
| equities | Financial rights to the assets of a business |
| ethics | The principles of right abd wrong that guide to an individual in making decisions |
| expense | A decrease in owner's equity resulting from the operation of a business |
| financial statements | Financial reports that summerize the financial condition and operations of a business |
| liability | An amount owed by a business |
| owner's equity | The amount remaining after the value of all liabilities is subtracted from the value of all assets |
| proprietorship | A business owned by one person |
| revenue | An increase in owner's equity in a business |
| sale on account | A sale for which cash will be received at a later date |
| service business | A business that performs an activity for a fee |
| transaction | A business activity that changes assets, liabilities, or owner's equity |
| withdrawls | Assets taken out of a business for the owner's personal use |
| Accounting is the language of business | (True/False) True |
| Keeping personal business records seperate is an application of the business entity concept | (True/False) true |
| Assets such as cash and supplies have a value because they can be used to acquire other assets or be used to operate a business | (True/False) True |
| The relationship among assets, liabilities, and owner's equity can be written as an equation | (True/False) True |
| The accounting equation does not have to be in balance to be coreect | (True/False) False |
| The sum of assets, and liabilities of a business always equals the investment of the business owner | (True/False) False |
| Recording business costs in terms of hours required to complete projects is an application of the unit of measurement concept | (True/False) False |
| The capital account is an owner's equity account | (True/False) True |
| If two amounts are recorded on the same side of the accounting equation, the equation will no longer be in balance | (True/False) False |
| When a company pays insurance premiums in advance to an insurer, it records the payment as a liability because the insurer owes future coverages | (True/False) False |
| When items are bought and paid for later this is referred to as buying on account | (True/False) True |
| When cash is paid on account, a liability is increased | (True/False) False |
| When cash is received from a sale, the total amount of both assets and owner's equity is increased | (True/False) True |
| A sale for which cash will be received at a later date is called a charge sale | (True/false) True |
| The accounting conept Realization of Revenue is applied when revenue is recorded at the time goods or services are sold | (True/False) True |
| When cash is paid for expenses, the business has more equity | (True/False) False |
| 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 | (True/False) False |
| A withdrawl decreases owner's equity | (True/False) True |
