accounting chat 1

Question 1

Accounting

Answer 1

is the process of planning, recording, analyzing, and interpting financial info

Question 2

Accounting system

Answer 2

is a planned process designed

Question 3

Financial statement

Answer 3

reports that summarize the financial conditions and operations of a business are called financial statements

Question 4

Net worth statement

Answer 4

ALLOWS THE PERSON EXTENDING THE LOAN TO SEE FINACIAL POSITION of a borrower on a specific date and make a lending decisions.

Question 5

Asset

Answer 5

anything of value that is owned

Question 6

Liability

Answer 6

an amount owed

Question 7

Personal net worth

Answer 7

the difference between personal assets and personal liabilities

Question 8

Equity

Answer 8

the difference between assets and liabilities

Question 9

Ethics

Answer 9

the principles of right and wrong that guide an individual in making decisions

Question 10

Business ethics

Answer 10

the use of ethics in making business decisions

Question 11

Service business

Answer 11

a business that preforms an activity for a fee

Question 12

Proprietorship

Answer 12

a business owned by one person

Question 13

Business plan

Answer 13

a formal written document that describes the nature of a business and how it will operate.

Question 14

GAAP

Answer 14

the standards and rules that accountants follow while recording and reporting financial activities

Question 15

Equities

Answer 15

financial rights to the asset of a business

Question 16

Owners equity

Answer 16

the amount remaining after the values of all liabilities is subtracted from the value of all assets

Question 17

Accounting equation

Answer 17

the equation showing relationship among assets, liabilities, and owners equity

Question 18

Assets= liabilities + owners equity

Answer 18

Assets= liabilities + owners equity

Question 19

Left side amount – right side amount

Answer 19

Left side amount – right side amount

Question 20

Accounts call any business activity that changes assets, liabilities, or owners equity a transaction
A record that summarizes all the transaction pertaining to a single item in the accounting equation is called an account

Answer 20

Accounts call any business activity that changes assets, liabilities, or owners equity a transaction
A record that summarizes all the transaction pertaining to a single item in the accounting equation is called an account

Question 21

The name given to an account is called an account title
The difference between the increases and decreases in an account is called an account balance
An account used to summarized the owners equity in a business is called a capital account

Answer 21

The name given to an account is called an account title
The difference between the increases and decreases in an account is called an account balance
An account used to summarized the owners equity in a business is called a capital account

Question 22

A person or business to whom a liability is owed is called a creditor.

An increase in equity resulting from the sale of good or services is called revenue

A sale for which payment will be received at a later date is called sale on account

Unlike a liability, which is an amount that is owed, the cost of goods or service used to operate a business is called expense

Assets taken from the business from the owners personal use are called withdrawals

Answer 22

A person or business to whom a liability is owed is called a creditor.

An increase in equity resulting from the sale of good or services is called revenue

A sale for which payment will be received at a later date is called sale on account

Unlike a liability, which is an amount that is owed, the cost of goods or service used to operate a business is called expense

Assets taken from the business from the owners personal use are called withdrawals