Accounting

Question 1

service business

Answer 1

insurance, haircuts, banking, hotels

Question 2

merchandising business

Answer 2

retail, electronics, clothing

Question 3

manufacturing business

Answer 3

caterpillar, snap-on, Nike, apple, sony

Question 4

assets

Answer 4

things owned by a company with value

Question 5

liabilities

Answer 5

things owned by a company, debts

Question 6

owner’s equity

Answer 6

owner’s worth or value invested in the company

Question 7

1st form of accounting equation

Answer 7

Assets=liabilities+owner’s equity

Question 8

2nd form of accounting equation

Answer 8

assets-liabilities=owner’s equity

Question 9

income statement

Answer 9

financial statement that shows a profit or loss for the month

Question 10

owner’s equity statement

Answer 10

financial statement that shows how much the business is worth at any given point in time

Question 11

balance sheet

Answer 11

financial statement that shows the companies assets, liabilities, and updated owner’s equity

Question 12

t-chart

Answer 12

left side=debit (-), credit=right side(+)