ACCOUNTING Chapter 1 EXAM Questions And
CORRECT Answers
accounting - CORRECT ANSWERS planning, recording, analyzing, and interpreting financial
information
accounting system - CORRECT ANSWERS a planned process for providing financial
information that will be useful to management
accounting records - CORRECT ANSWERS organized summaries of a business's financial
activities
financial statements - CORRECT ANSWERS financial reports that summarize the financial
condition and operations of a business
service business - CORRECT ANSWERS a business that performs an activity for a fee
proprietorship - CORRECT ANSWERS a business owned by one person
asset - CORRECT ANSWERS anything of value that is owned
equities - CORRECT ANSWERS financial rights to the assets of a business
liability - CORRECT ANSWERS an amount owed by a business
owners equity - CORRECT ANSWERS the amount remaining after the value of all liabilities
is subtracted from the value of all assets
CORRECT Answers
accounting - CORRECT ANSWERS planning, recording, analyzing, and interpreting financial
information
accounting system - CORRECT ANSWERS a planned process for providing financial
information that will be useful to management
accounting records - CORRECT ANSWERS organized summaries of a business's financial
activities
financial statements - CORRECT ANSWERS financial reports that summarize the financial
condition and operations of a business
service business - CORRECT ANSWERS a business that performs an activity for a fee
proprietorship - CORRECT ANSWERS a business owned by one person
asset - CORRECT ANSWERS anything of value that is owned
equities - CORRECT ANSWERS financial rights to the assets of a business
liability - CORRECT ANSWERS an amount owed by a business
owners equity - CORRECT ANSWERS the amount remaining after the value of all liabilities
is subtracted from the value of all assets
