Chapter 1 Accounting Vocabulary Fourth 7

Question 1

Revenue

Answer 1

An increase in equity resulting from the sale of goods or services

Question 2

Sale on Account

Answer 2

A sale for whihc payment will be received at a later date

Question 3

Service Business

Answer 3

A business that performs an activity for a free

Question 4

Transaction

Answer 4

Any business activity that changes assets, liabilities, or owner’s equity

Question 5

Withdrawals

Answer 5

Assets taken from the business for the owner’s personal use