Accounting Chapter 1-8 (correct answers)
Account correct answers a record summarizing all the information pertaining to a single
item in the account
Account balance correct answers the amount in the account
Account title correct answers the name given to an account
Accounting correct answers planning, recording, analyzing, and interpreting financial
information
Accounting equation correct answers assets = liabilities + owner's equity
Accounting records correct answers organized summaries of a business's financial
activities
"the language of accounting"
Accounting system correct answers a planned process for the providing financial
information that will be unusual to management. *what is bought and sold
Asset correct answers anything of value that is owned
business ethics correct answers the use of ethics in making business decisions
equities correct answers financial rights to the asets of a business
capital correct answers the accounting used to sumarize te owner's equity in a business
ethics correct answers the principles of right and wring that quide an individual in
making decisions
expense correct answers a decrease in owner's equity resulting from the operation of a
business
financial statements correct answers financial reports that summarize the financial
condition nd operations of a business
owner's equity correct answers the amount remaining after the value of all liabilities is
subtracted from the value of all assets
proprietorship correct answers business owned by one person- simplest type of
business
, revenue correct answers an increase in owner's equity resulting from the operation of a
business
sale on account correct answers a sale for which cash will be recieved at a later date
- charge sale
service business correct answers a business that performs an activity
transaction correct answers a business activity that changes assets, liabilities, or
owner's equity
withdrawals correct answers assets taken out of a business for the owner's personal
use
chart of accounts correct answers a list of accounts used by a business
credit correct answers an amount recorded on the right side of a T account
debit correct answers an amount recorded on the left side of a T account
normal balance correct answers the side of the account that is increased
T account correct answers an accounting device used to analyze transactions
Adjusting Entries correct answers Journal entries recorded to update general ledger
accounts at the end of a fiscal period
Permanent Accounts correct answers Accounts used to accumulate information from
one fiscal period to the next
Temporary Accounts correct answers Accounts used to accumulate infromation until it
is transferred to the owner's capital account
Closing Entries correct answers Journal entries used to prepare temporary accounts for
a new fiscal period
Post-Closing Trial Balance correct answers A trial balance prepared after the closing
entries are posted
Accounting Cycle correct answers The series of accounting activities included in
recording financial information for a fiscal period
Stakeholders correct answers Any persons or groups who will be affected by an action
Component Percentage correct answers The percentage relationship between one
financial statement item and the total that includes that item
Account correct answers a record summarizing all the information pertaining to a single
item in the account
Account balance correct answers the amount in the account
Account title correct answers the name given to an account
Accounting correct answers planning, recording, analyzing, and interpreting financial
information
Accounting equation correct answers assets = liabilities + owner's equity
Accounting records correct answers organized summaries of a business's financial
activities
"the language of accounting"
Accounting system correct answers a planned process for the providing financial
information that will be unusual to management. *what is bought and sold
Asset correct answers anything of value that is owned
business ethics correct answers the use of ethics in making business decisions
equities correct answers financial rights to the asets of a business
capital correct answers the accounting used to sumarize te owner's equity in a business
ethics correct answers the principles of right and wring that quide an individual in
making decisions
expense correct answers a decrease in owner's equity resulting from the operation of a
business
financial statements correct answers financial reports that summarize the financial
condition nd operations of a business
owner's equity correct answers the amount remaining after the value of all liabilities is
subtracted from the value of all assets
proprietorship correct answers business owned by one person- simplest type of
business
, revenue correct answers an increase in owner's equity resulting from the operation of a
business
sale on account correct answers a sale for which cash will be recieved at a later date
- charge sale
service business correct answers a business that performs an activity
transaction correct answers a business activity that changes assets, liabilities, or
owner's equity
withdrawals correct answers assets taken out of a business for the owner's personal
use
chart of accounts correct answers a list of accounts used by a business
credit correct answers an amount recorded on the right side of a T account
debit correct answers an amount recorded on the left side of a T account
normal balance correct answers the side of the account that is increased
T account correct answers an accounting device used to analyze transactions
Adjusting Entries correct answers Journal entries recorded to update general ledger
accounts at the end of a fiscal period
Permanent Accounts correct answers Accounts used to accumulate information from
one fiscal period to the next
Temporary Accounts correct answers Accounts used to accumulate infromation until it
is transferred to the owner's capital account
Closing Entries correct answers Journal entries used to prepare temporary accounts for
a new fiscal period
Post-Closing Trial Balance correct answers A trial balance prepared after the closing
entries are posted
Accounting Cycle correct answers The series of accounting activities included in
recording financial information for a fiscal period
Stakeholders correct answers Any persons or groups who will be affected by an action
Component Percentage correct answers The percentage relationship between one
financial statement item and the total that includes that item
