ACCOUNTING 211 Liberty University -ACCT 211 - Exam 1 verified to pass

ACCT 211 - Exam 1 Accounting - correct answer Information and measurement system that identifies, records, and communicates relevant information about a company's business activities. Accounting Equation - correct answer Equality involving a company's assets, liabilities, and equity; Assets = Liabilities + Equity; also called balance sheet equation Assets - correct answer Resources a business owns or controls that are expected to provide current and future benefits to the business. Audit - correct answer Analysis and report of an organization's accounting system, its records, and its reports using various tests. Auditors - correct answer Individuals hired to review financial reports and information systems. Internal auditors of a company are employed to assess and evaluate its system of internal controls, including the resulting reports. External auditors are independent of a company and are hired to assess and evaluate the "fairness" of financial statements (or to perform other contracted financial services) Balance Sheet - correct answer Financial statement that lists types and dollar amounts of assets, liabilities, and equity at a specific date. Bookkeeping - correct answer (recordkeeping) part of accounting that involves recording transactions and events, either manually or electronically. Business Entity Assumption - correct answer Principle that requires a business to be accounted for separately from its owner(s) and from any other entity. Common Stock - correct answer Corporation's basic ownership share; also generically called capital stock