WEEK 3 Flashcards
1
Q
Activities that change the assets. Liabilities, and equity of a company
A
Business transaction
2
Q
Resources with financial value owned by an entity
Used to generate revenue
A
ASSETS
3
Q
Financial obligations that arise from previous business transactions
(DEBT OR COST)
A
LIABILITIES
4
Q
The percentage of the business that belongs to the owner or shareholders
A
Owner’s Equity
5
Q
give the Expanded Accounting Equation
A
Assets = liabilities + capital + revenue - expenses - drawings
6
Q
give the accounting equation
A
Assets = Liabilities + owner’s Equity
7
Q
Reports in detail the business assets, liabilities and equity
A
balance sheet
8
Q
Every transaction is recorded in at least two accounts that are affected in opposite ways
A
Double- Entry System
