The Accounting Equation Section 1

Front

Planning, recording, analyzing, and interpreting financial information is called

Back

accounting.

Front

Financial reports that summarize the financial condition and operations of a business are called financial

Back

statements

Front

A business that performs an activity for a fee is called a

Back

service business

Front

A business owned by one person is called a

Back

proprietorship

Front

Anything of value that is owned is called a(n)

Back

asset

Front

Financial rights to the assets of a business are called liens.

Back

False

Front

The amount remaining after the value of all liabilities is subtracted from the value of all assets is called

Back

owner's equity

Front

A business activity that changes assets, liabilities, or owner's equity is called a

Back

transaction

Front

Each part of the accounting equation consists of one or more accounts.

Back

True

Front

An account balance is a term applied when both sides of the accounting equation are equal, or, in balance.

Back

False