FREE ACCOUNTING AND STUDY GAMES ABOUT CHAPTER

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FREE ACCOUNTING AND STUDY GAMES ABOUT CHAPTER

1 EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -26 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Net worth statement

Answer:

A formal report that shows what an individual owns, owes, and the difference between the two

Question 2: Equities

Answer:

Financial rights to the assets of a business

Question 3: GAAP

Answer:

Generally accepted accounting principals. The standards and rules that accountants follow while recoring and reporting financial activites.

Question 4: Account balance

Answer:

The difference between the increases and decreases in an account

Question 5: Accounting system

Answer:

A planned process designed to compile financial data and summarize the results in accounting records and reports.

Question 6: Withdrawals

Answer:

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

Question 7: Sale on account

Answer:

A sale for which payment will be received at a later date

Question 8: Creditor

Answer:

A person or business to whom a liability is owed

Question 9: Financial statements

Answer:

Financial report that summarizes the financial conditions and operations of a business

Question 10: Liability

Answer:

An amount owed

Question 11: Expense

Answer:

The costs of goods or services used to operate a business

Question 12: Business plan

Answer:

A formal written document that describes the nature of a business and how it will operate

Question 13: Personal net worth

Answer:

The difference between personal assets and personal liability

Question 14: Account title

Answer:

An account's name

Question 15: Business ethics

Answer:

The use of ethics in making business decisions

Question 16: Accounting equation

Answer:

An equation showing the relationships among assets, liabilities, and owner's equity

Question 17: Account

Answer:

A record that summarizes all the transactions pertaining to a single item in the accounting equation

Question 18: Revenue

Answer:

An increase in equity resulting from the sale of goods or services

Question 19: Ethics

Answer:

The principles of right and wrong that guide an individual in making decisions

Question 20: Equity

Answer:

The difference between assets and liabilities

Question 21: Capital account

Answer:

An account used to summarize the owner's equity in a business

Question 22: Asset

Answer:

Anything of value that is owned

Question 23: Accounting

Answer:

The process of planning, recording, analyzing, and interpreting financial information

Question 24: Service business

Answer:

A business that performs an activity for a fee

Question 25: Proprietorship

Answer:

A business owned by one person

Question 26: Transaction

Answer:

Any business activity that changes assets, liabilities, or owner's equity.