Accounting 1

Question 1

Assets

Answer 1

Owned by the business

Question 2

Equities

Answer 2

Financial rights to the assets of a business

Question 3

Owner’s Equity

Answer 3

Amount remaking after the value of all liabilities is subtracted from the value of all assets

Question 4

Accounting Equation

Answer 4

Assets=Liabilities+Owner’s Equity

Question 5

Business Entity

Answer 5

An institution that is in existence to serve a purpose

Question 5

Merchandising

Answer 5

Sells items (Walmart)

Question 5

Types of businesses

Answer 5

Business entity, Service, Merchandising, Manufacturing, And Extracting

Question 5

Service

Answer 5

Does something that performs a service (dry cleaners)

Question 5

Extracting

Answer 5

A business that collects material such as a natural resource; minerals

Question 5

Manufacturing

Answer 5

Constructs items to sell for profit (Levi’s, jeans)

Question 5

Types of Business Ownership

Answer 5

Sole Proprietorship, Partnership, Corporation, Limited Liability, and Cooperative

Question 6

Sole Proprietorship

Answer 6

Business owned by one person

Question 7

Partnership

Answer 7

Business owned by two or more owners & remain private to them

Question 8

Corporation

Answer 8

Public entity- has other stockholders/shareholders

Question 10

Limited Liability

Answer 10

Share benefits of both a partnership and a cooperation personally responsible for the debts of business