Ch. 1: asset, liabilty, owners equity, revenue and expense accounts

Question 1

assets

Answer 1

properties or things of value, such as cash, equipment, copyrights, building and land, owned and controlled by an economic unit or business entity.

Question 2

business entity

Answer 2

an economic unit in itself and the assets or properties of the business are completely separate from the owners personal assets.

Question 3

capital and or equity

Answer 3

owners right, claim or financial interest

Question 4

owers equity

Answer 4

owners right to or investment in business.

Question 5

creditor

Answer 5

one to whom your money is owed.

Question 6

liabilities

Answer 6

present debts

Question 7

fundamental accounting equation

Answer 7

asset = liabilites + owners expense.

Question 8

separate entity concept

Answer 8

business is treated as a separate economic or accounting entity.

Question 9

accounting

Answer 9

the process of analyzing, classifying, recording, summarizing and interpreting business transactions.

Question 10

double-entry accouting

Answer 10

is the fact that each transaction must be recorded in at least two accounts keeping the accounting equation in balance.

Question 11

accounts payable

Answer 11

used for short term obligations or charge accounts usually due within 30 days

Question 12

fair market values

Answer 12

is the present worth of an asset.

Question 13

revenues

Answer 13

amounts earned by a business.

Question 14

expenses

Answer 14

the cost that relate to earing revenue

Question 15

chart of accounts

Answer 15

official list pf accounts tailor-made for the business

Question 16

account numbers

Answer 16

numbers preceding the account tiles.

Question 17

accounts receivable

Answer 17

to record the amounts due from charged customers