Cengage Accounting Chapter 1 Updated 2025
Questions and Verified Answers/ Complete Solutions
with Rationales |Get It 100% Accurate!! Already
Passed!!
Terms in this set (48) Questions VERIFIED ANSWERS
account form The form of balance sheet that
resembles the basic format of the
accounting equation, with assets on the
left side and Liabilities and Owner's
Equity sections on the right side.
account payable The liability created by a purchase on
account.
account receivable A claim against the customer created by
selling merchandise or services on
credit.
accounting An information system that provides
reports to stakeholders about the
, economic activities and condition of a
business.
accounting equation Assets = Liabilities + Owner's Equity.
assets The resources owned by a business.
balance sheet A list of the assets, liabilities, and
owner's equity as of a specific date,
usually at the close of the last day of a
month or a year.
business An organization in which basic
resources (inputs), such as materials
and labor, are assembled and processed
to provide goods or services (outputs)
to customers.
business entity concept A concept of accounting that limits the
economic data in the accounting system
to data related directly to the activities
of the business.
business transaction An economic event or condition that
directly changes an entity's financial
condition or directly affects its results
of operations.
Certified Public Accountant (CPA) Public accountants who have met a
state's education, experience, and
Questions and Verified Answers/ Complete Solutions
with Rationales |Get It 100% Accurate!! Already
Passed!!
Terms in this set (48) Questions VERIFIED ANSWERS
account form The form of balance sheet that
resembles the basic format of the
accounting equation, with assets on the
left side and Liabilities and Owner's
Equity sections on the right side.
account payable The liability created by a purchase on
account.
account receivable A claim against the customer created by
selling merchandise or services on
credit.
accounting An information system that provides
reports to stakeholders about the
, economic activities and condition of a
business.
accounting equation Assets = Liabilities + Owner's Equity.
assets The resources owned by a business.
balance sheet A list of the assets, liabilities, and
owner's equity as of a specific date,
usually at the close of the last day of a
month or a year.
business An organization in which basic
resources (inputs), such as materials
and labor, are assembled and processed
to provide goods or services (outputs)
to customers.
business entity concept A concept of accounting that limits the
economic data in the accounting system
to data related directly to the activities
of the business.
business transaction An economic event or condition that
directly changes an entity's financial
condition or directly affects its results
of operations.
Certified Public Accountant (CPA) Public accountants who have met a
state's education, experience, and
