Accounting I

Front 1

planning, recording, analyzing, and interpreting financial information

Back 1

accounting

Front 2

a planned process for providing financial information that will be useful to management

Back 2

accounting system

Front 3

organized summaries of a business's financial activities

Back 3

accounting records

Front 4

financial reports that summarize the financial condition and operations of a business

Back 4

financial statements

Front 5

a business that is owned by one person

Back 5

proprietorship

Front 6

a business that performs an activity for a fee

Back 6

service business

Front 7

anything of value that is owned

Back 7

asset

Front 8

financial rights to the assets of a business

Back 8

equities

Front 9

the amount owed by a business

Back 9

liability

Front 10

the amount remaining after the value of all liabilities is substracted from the value of all assets

Back 10

owner's equity

Front 11

an equation showing the relationship among assets, liabilities, and owners equity

Back 11

accounting equation

Front 12

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

Back 12

ethics

Front 13

the use of ethics in making business decisions

Back 13

business ethics

Front 14

a business activity that changed assets, liabilities, or owners equity

Back 14

transaction

Front 15

a record summarizing all the information pertaining to a single item in the accounting equation

Back 15

account

Front 16

the name given to an account

Back 16

account title

Front 17

the amount in an account

Back 17

account balance

Front 18

the account used to summarize the owners equity in a business

Back 18

capital

Front 19

an increase in owners equity resulting from the operation of a business

Back 19

revenue

Front 20

a sale for which cash will be received at a later date

Back 20

sale on account

Front 21

a decrease in owners equity resulting from the operation of a business

Back 21

expense

Front 22

assets taken out of a business for the owners personal use

Back 22

withdrawal

Front 23

T/F: accounting is the language of business

Back 23

true

Front 24

T/F:keeping personal and business records separate is an application of the business entity concept

Back 24

true

Front 25

T/F: assets such as cash and supplies have value because they can be used to acquire other assets or be used to operate a business

Back 25

true

Front 26

T/F: keeping personal and business records separate is an application of the business entity concept

Back 26

true

Front 27

T/F: assets such as cash and supplies have value because they can be used to acquire other assets or be used to operate a business

Back 27

true

Front 28

T/F: the relationship among assets, liabilities, and owners equity can be written as an equation

Back 28

true

Front 29

T/F: the accounting equation does not have to be in balance to be correct

Back 29

false

Front 30

T/F: Recording business costs in terms of house required to complete projects is an application of the unit of measurement concept

Back 30

false

Front 31

T/F: The capital account is an owners equity account

Back 31

true

Front 32

T/F: If two amounts no are recorded on the same side of the accounting equation, the equation will no longer be in balance

Back 32

false

Front 33

T/F: When a company pays insurance premiums in advance to an insurere, it records the payment as a liability because the insurere owes future coverage

Back 33

false

Front 34

T/F: when items are bought and paid for later this is referred to as buying on account

Back 34

true

Front 35

T/F: when cash is paid on account, a liability is increased

Back 35

false

Front 36

T/F: When cash is received from sale, the total amount of both assets and owners equity is increased

Back 36

true

Front 37

T/F; a sale for which cash will be received at a later date is called charge sale

Back 37

false

Front 38

T/F: The accounting concept Realization of Revenue is applied when revenue is recorded at the time goods or services are sold

Back 38

true

Front 39

T/F: when cash is paid for expenses, the business has more equity

Back 39

false

Front 40

T/F: when a company receives cash froma customer for a prior sale, the transaction increases the cash amount balance and increases the accounts receivable balance

Back 40

false

Front 41

T/F: a withdrawal decreases owners equity

Back 41

true