accounting unit 1

Question 1

planning, recording, analyzing, and interpreting financial information.

Answer 1

accounting

Question 2

a buisness owned by one person

Answer 2

proprietorship

Question 3

anything of value that is owned

Answer 3

assets

Question 4

an amount owned by a buisness

Answer 4

liabilities

Question 5

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

Answer 5

owner’s equity (O.E.)

Question 6

a buisness activity that changes assets, liabilities, or owner’s equity

Answer 6

transaction

Question 7

name given to an account

Answer 7

account title

Question 8

a financial statement that reports assets, liabilities, and owner’s equity on a specific date

Answer 8

balance sheet (B.S.)

Question 9

3 sections of a balance sheet

Answer 9

assets, liabilities, owner’s equity

Question 10

1st step in preparing a balance sheet

Answer 10

title the balance sheet (company name, balance sheet, date)

Question 11

1st line in heading of a balance sheet

Answer 11

company name

Question 12

an equation showing the relationship among assets, liabilities, and owner’s equity

Answer 12

accounting equation

Question 13

what goes beneath the total amount columns to show that totals have been verified?

Answer 13

double line

Question 14

5,000= ? + 12,000 —-> whats the liabilities?

Answer 14

7,000

Question 15

2nd step in preparing a balance sheet?

Answer 15

assets column

Question 16

a single line means that amounts are to be ______ (can be added or subtracted)

Answer 16

totaled

Question 17

true or false: assets are on the left side of balance sheet

Answer 17

true

Question 18

true or false: liabilities and owner’s equity are on the right side of the balance sheet

Answer 18

true

Question 19

true or false: the 7th step of balance sheet is to write the totals for assets and liabilities and owner’s equity

Answer 19

true

Question 20

whats included in heading of balance sheet?

Answer 20

company name, balance sheet, date

Question 21

the account used to summarize the owner’s equity in a buisness is called _______

Answer 21

capital

Question 22

the amount in an account is called _______

Answer 22

account balance

Question 23

bought supplies on account

Answer 23

+ supplies + account(s) payable

Question 24

received cash from owner as an investment

Answer 24

+ cash +capital

Question 25

paid cash for insurance

Answer 25

• cash + pre-paid insurance

Question 26

paid cash on account

Answer 26

• cash - account(s) payable

Question 27

paid cash for supplies

Answer 27

• cash + supplies

Question 28

paid cash for insurance

Answer 28

• cash + pre-paid insurance