Survey Of Accounting Terms Exam Questions and Answers Already Passed
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Survey Of Accounting Terms
Institution
Survey Of Accounting Terms
Survey Of Accounting Terms Exam Questions and Answers Already Passed
Accounting - Answers A system that measures the business's activities in financial terms, provides written reports and financial statements about those activities, and communicates these reports to decision makers and others.
A...
Survey Of Accounting Terms Exam Questions and Answers Already Passed
Accounting - Answers A system that measures the business's activities in financial terms, provides
written reports and financial statements about those activities, and communicates these reports to
decision makers and others.
Accounts payable - Answers Amounts owed to creditors that result from the purchase of goods or
services on account—a liability.
Accounts receivable - Answers An asset that indicates amounts owed by customers.
Assets - Answers Properties (resources) of value owned by a business (cash, equipment, land).
Balance sheet - Answers A statement, as of a particular date, that shows the amount of assets owned by
a business as well as the amount of claims (liabilities and owner's equity) against these assets.
Bookkeeping - Answers The recording function of the accounting process.
Capital - Answers The owner's investment of equity in the company.
Corporation - Answers A type of business organization that is owned by stockholders. Stockholders
usually are not personally liable for the corporation's debts.
Creditor - Answers Someone who has a claim to assets.
Ending capital - Answers Beginning Capital + Additional Investments +Net Income - Withdrawals =
Ending Capital. Or: Beginning Capital + Additional Investments - Net Loss - Withdrawals = Ending Capital.
Equities - Answers The interest or financial claim of creditors (liabilities) and owners (owner's equity)
who supply the assets to a firm.
Expense - Answers A cost incurred in running a business by consuming goods or services in producing
revenue; a subdivision of owner's equity. When expenses increase, there is a decrease in owner's equity.
GAAP Generally accepted accounting principles - Answers The procedures and guidelines that must be
followed during the accounting process.
Income statement - Answers An accounting statement that details the performance of a firm (revenue
minus expenses) for a specific period of time.
Liabilities - Answers Obligations that come due in the future. Liabilities result in increasing the financial
rights or claims of creditors to assets.
, Manufacturer - Answers Business that makes a product and sells it to its customers.
Merchandise company - Answers Business that buys a product from a manufacturing company to sell to
its customers.
Net Income - Answers When revenue totals more than expenses, the result is net income.
Net loss - Answers When expenses total more than revenue, the result is net loss.
Owner's equity - Answers Rights or financial claims to the assets of a business (in the accounting
equation, assets minus liabilities).
Partnership - Answers A form of business organization that has at least two owners. The partners usually
are personally liable for the partnership's debts.
Revenue - Answers An amount earned by performing services for customers or selling goods to
customers; it can be in the form of cash or accounts receivable. A subdivision of owner's equity: As
revenue increases, owner's equity increases.
Service company - Answers Business that provides a service.
Shift in assets - Answers A shift that occurs when the composition of the assets has changed but the
total of the assets remains the same.
Sole proprietorship - Answers A type of business ownership that has one owner. The owner is personally
liable for paying the business's debts.
Statement of financial position - Answers Another name for a balance sheet.
Statement of owner's equity - Answers A financial statement that reveals the change in capital. The
ending figure for capital is then placed on the balance sheet.
Supplies - Answers One type of asset acquired by a firm; it has a much shorter life than equipment.
Withdrawals - Answers A subdivision of owner's equity that records money or others assets an owner
withdraws from a business for personal use.
Account - Answers An accounting device used in bookkeeping to record increases and decreases of
business transactions relating to individual assets, liabilities, capital, withdrawals, revenue, expenses,
and so on.
Chart of account - Answers A numbering system of accounts that lists of the account titles and account
numbers to be used by a company.
Compound entry - Answers A transaction involving more than one debit or credit.
Credit - Answers The right-hand side of any account. A number entered on the right side of any account
is said to credited to an account.
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