Question

chapter 1 test a
name:
defining accounting terms 22 pts.
analyzing accounting practices 15 pts.
determining how transactions change an accounting equation 48 pts.
determining how transactions change an accounting equation 40 pts.
total 125 pts.
perfect score
your score
part one—defining accounting terms
directions: select the one term in column i that best fits each definition in column ii. print the letter identifying your choice in the answers column.
column i
a. account
b. account balance
c. account title
d. accounting
e. accounting equation
f. accounting records
g. accounting system
h. asset
i. business ethics
j. capital
k. equities
l. ethics
m. expense
n. financial statements
o. liability
p. owners equity
q. proprietorship
r. revenue
s. sale on account
t. service business
u. transaction
v. withdrawals
column ii

1. the use of ethics in making business decisions.
2. planning, recording, analyzing, and interpreting financial information.
3. an equation showing the relationship among assets, liabilities, and owners equity.
4. a business activity that changes assets, liabilities, or owners equity.
5. a planned process for providing financial information that will be useful to management.
6. the amount in an account.
7. the account used to summarize the owners equity in the business.
8. the amount remaining after the value of all liabilities is subtracted from the value of all assets.
9. a record summarizing all the information pertaining to a single item in the accounting equation.
10. organized summaries of a businesss financial activities.
11. anything of value that is owned.
12. a sale for which cash will be received at a later date.
13. assets taken out of a business for the owners personal use.
14. an increase in owners equity resulting from the operation of a business.
15. a business owned by one person.
16. financial rights to the assets of a business.
17. a business that performs an activity for a fee.
18. the principles of right and wrong that guide an individual in making decisions.
19. financial reports that summarize the financial conditions and operations of a business.
20. an amount owed by a business.
21. the name given to an account.
22. a decrease in owners equity resulting from the operation of a business.

answers

1. _______
2. _______
3. _______
4. _______
5. _______
6. _______
7. _______
8. _______
9. _______
10. _______
11. _______
12. _______
13. _______
14. _______
15. _______
16. _______
17. _______
18. _______
19. _______
20. _______
21. _______
22. _______

Explanation:

Each definition is matched to the corresponding accounting term based on standard accounting vocabulary and concepts.

Answer:

1. I. business ethics
2. D. accounting
3. E. accounting equation
4. U. transaction
5. G. accounting system
6. B. account balance
7. J. capital
8. P. owner’s equity
9. A. account
10. F. accounting records
11. H. asset
12. S. sale on account
13. V. withdrawals
14. R. revenue
15. Q. proprietorship
16. K. equities
17. T. service business
18. L. ethics
19. N. financial statements
20. O. liability
21. C. account title
22. M. expense