Chapter 1

Question 1

Things we own are called?

Answer 1

Assets

Question 2

Things we owe are called?

Answer 2

Liabilities

Question 3

Vehicles, buildings, land, cash etc. When you have something you own are all?

Answer 3

Assets

Question 4

A party owes you money, but what we own is the right to be paid, is called?

Answer 4

Accounts Receivable

Question 5

A party owes you money and you own the right to be paid, is called?

Answer 5

Notes Receivable

Question 6

The Accounting Equation Assets =

Answer 6

Assets = Liabilities + Equity

Question 7

An account payable, wages payable, taxes payable, interest payable. If a word has payable then it is a _________.

Answer 7

Liabilities

Question 8

Unearned revenues is?

Answer 8

Liabilities

Question 9

When service is owed, it is called?

Answer 9

Unearned revenue

Question 10

What is left over if we use our assets to pay off our liabilities?

Answer 10

Equity.

Question 11

The Accounting Equation Equity =

Answer 11

Equity = Assits - Liabilities

Question 12

The Accounting Equation broken down further Assets =

Answer 12

Equity = Contributed Capital + Retained Earnings

Question 13

Owners put their personal assets into the business is called?

Answer 13

Contributed Capital

Question 14

Contributed Capital + Retained Earnings=

Answer 14

Equity

Question 15

Someone has pad us in advance but we did not do what we were suppose to do with it, this is called?
What we owe is service or unearned merchandise.

Answer 15

Liabilities

Question 16

Net Income - Dividends =

Answer 16

Retained Earnings

Question 17

What are assets that are distributed to owners called?

Answer 17

Dividends

So we are giving cash or other assets back to the owner.

Question 18

Revenues - Expenses =

Answer 18

Net Income

Question 19

Our net earnings are accumulated from the day we start the business until now that is called ?

Answer 19

Retained Earnings

except what we paid back to our owners

Question 20

What we earn by the work that our business does is called?

Answer 20

Net Income

Question 21

An accounting firm anytime that they do work for a client, accounting work, tax work or consulting and we earn cash from that, it is called?

Answer 21

Revenues

Question 22

If you are an auto dealer and you sell a car, the money would be considered?

Answer 22

Revenue to us.

Question 23

If you are paying college tuition, the money you are paying would be called?

Answer 23

Reverent to the college

Question 24

What we use up is called?

Answer 24

Expenses

There are lots of expense; utility expense, wage expense, and so on.