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Accounting IA - Chapter 1 & 2

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1.
1 point
Organized summaries of a business's financial activities.
2.
1 point
A sale for which cash will be received at a later date.
3.
1 point
Total assets are the amount the owner has invested in the business.
4.
1 point
Planning, recording, analyzing, and interpreting financial information.
5.
1 point
The principles of right and wrong that guide an individual in making decisions.
6.
1 point
A business that performs an activity for a fee.
7.
1 point
Anything of value that is owned.
8.
1 point
A planned process for providing financial information that will be useful to management.
9.
1 point
Financial rights to the assets of a business.
10.
1 point
Withdrawals are assets taken out of a business for the owner's personal use.
11.
1 point
A business activity that changes assets, liabilities, or owner's equity.
12.
1 point
An increase in owner's equity resulting from the operation of a business.
13.
1 point
Each transaction changes the balances in at least two accounts.
14.
1 point
A decrease in owner's equity resulting from the operation of a business.
15.
1 point
Detailed information about changes in owner's equity is needed by owners and managers to make sound business decisions.
16.
1 point
The capital account is the owner's liability account.
17.
1 point
Financial reports that summarize the financial conditions and operations of a business.
18.
1 point
When two asset accounts are changed in a transaction, there must be an increase and a decrease.
19.
1 point
The name given to an account.
20.
1 point
An expense is a decrease in owner's equity resulting from the operation of a business.
21.
1 point
An equation showing the relationship among assets, liabilities, and owner's equity.
22.
1 point
A record summarizing all the information pertaining to a single item in the accounting equation.
23.
1 point
Prepaid Insurance is decreased with a debit.
24.
1 point
The amount remaining after the value of all liabilities is subtracted from the value of all assets.
25.
1 point
Increases to liability accounts are recorded on the debit side.
26.
1 point
A withdrawal is an expense.
27.
1 point
When an owner withdraws cash from the business, the transaction affects both assets and owner's equity.
28.
1 point
Payments for advertising, equipment repairs, utilities, and rent are expense transactions.
29.
1 point
When items are bought and paid for a future date, another way to state this is to say these items are bought on account.
30.
1 point
An accounting device used to analyze transactions is a T account.
31.
1 point
The amount in an account.
32.
1 point
After each transaction, the accounting equation must remain in balance.
33.
1 point
An amount owed by a business.
34.
1 point
Cash is increased with a credit.
35.
1 point
The use of ethics in making business decisions.
36.
1 point
A business owned by one person.
37.
1 point
The account used to summarize the owner's equity in the business.
38.
1 point
The most common type of withdrawal by an owner from a business is the withdrawal of cash.
39.
1 point
Assets taken out of a business for the owner's personal use.
40.
1 point
The accounting equation is most often stated as: Assets + Liabilities = Owner's Equity.
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