accounting equations Flashcards
1
Q
the accounting equation
A
assets = liability + equity
2
Q
Financial performance is assessed over specific time periods
A
fiscal concepts
3
Q
impacts the Owner’s Equity section of a balance sheet?
A
Net Income and Owner’s Contributions
4
Q
If a company has issued shares, what type of account is the capital derived from issuing those shares?
A
equity
5
Q
Decreases in economic benefits during the accounting period
A
expenses
6
Q
In the expanded accounting equation, which two components are directly subtracted to find Net Income?
A
income and expenses
7
Q
the primary purpose of the accounting equation?
A
To illustrate the relationship between a company’s assets, liabilities, and equity
8
Q
The basic summary
devise in accounting
is known as the
A
account
9
Q
Also known as net
assets or net worth
A
equity
