Accounting 200 Exam 1| 91 Questions and Answers(A+ Solution guide)

account payable - a liability backed by the general reputation and credit standing at the debtor. accounting - the information system that measures business activities, processes that information into reports and financial statements, and communicates the results to decision makers. accounting equation - assets=liabilities+owners equity asset - an economic resource that is expected to be of benefit in the future. balance sheet - list of an entity's assets, liabilities, and owner's equity as of a specific date. also called the statement of financial position. board of directors - group elected by the stockholders to set policy for a corporation and to appoint its officers. capital - another name for the owner's equity of a business cash - money and any medium of exchange that a bank accepts at face value. common stock - the most basic form of capital stock. continuity (going concern) assumption - holds that the entity will remain in operation for the foreseeable future. corporation - a business owned by stockholders. It is a legal entity, an "artificial person" in the eyes of the law