True/False
Indicate whether the statement is true or
false.
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1.
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Financial rights to the assets of a business are called liens.
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2.
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Each part of the accounting equation consists of one or more accounts.
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3.
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An account balance is a term applied when both sides of the accounting equation
are equal, or, in balance.
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4.
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A sale for which cash will be received at a later date is called accounts
payable.
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5.
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The account used to summarize the owner's equity in a business is called
capital.
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6.
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A decrease in owner's equity resulting from the operation of a business is
called an expense.
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7.
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Understanding accounting helps managers and owners make better business
decisions.
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8.
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Inaccurate accounting records is used to make the business appear to be more
successful than it really is, and thereby can help the business really succeed.
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9.
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Suppliers that extend credit to a business and institution have no stake in that
organization's success or failure.
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Matching
Use the word list provided below. Not all words will be
used; some may be used multiple times. Copy and paste from the list. Misspellings will be counted as
incorrect.
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A. | asset | H. | supplies increases | B. | Supplies decrease | I. | owner's equity | C. | increases cash,
decreases accounts receivable | J. | statements | D. | accounting | K. | service business | E. | credit | L. | proprietorship | F. | capital | M. | paid cash for supplies | G. | transaction |
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1.
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When a company receives cash from a customer for a prior sale, the transaction
____.
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2.
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A business owned by one person is called a(n) ____.
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3.
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When a business pays cash for supplies, ____.
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4.
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Planning, recording, analyzing, and interpreting financial information is
called a(n) ____.
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5.
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A business activity that changes assets, liabilities, or owner's equity is
called a(n) ____.
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6.
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Financial reports that summarize the financial condition and operations of a
business are called financial ____.
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7.
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Which of the following is not a transaction that will affect
owner's equity?
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8.
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A business that performs an activity for a fee is called a(n) ____.
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9.
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The amount remaining after the value of all liabilities is subtracted from the
value of all assets is called ____.
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10.
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Anything of value that is owned is called a(n) ____.
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11.
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The account used to summarize the owner's equity in a business is called
____.
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