Accounting: Ch. 1-4 Vocabulary and Concept Test

The process of planning, recording, analyzing, and interpreting financial information is called:

• Equity

• Accounting

• Revenue

• Journalizing

A planned process designed to compile financial data and summarize the results is a(n):

• Accounting System

• General Ledger

• Business Plan

• Chart of Accounts

Reports that summarize the financial condition and operations of a business are:

• Assets

• Liabilities

• Financial Statements

• Source Documents

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

• Liability

• Asset

• Capital Account

• Revenue

An amount owed is a(n):

• Equity

• Liability

• Withdrawal

• Account

The difference between personal assets and personal liabilities is:

• Personal Net Worth

• Owner's Equity

• Equity

• Net Income

The financial rights to the assets of a business are called:

• GAAP

• Equities

• Expenses

• Transactions

The equation showing the relationship among assets, liabilities, and owner’s equity is known as:

• Realization Principle

• Unit of Measurement

• Accounting Equation

• Business Entity

A record that summarizes all transactions pertaining to a single item in the accounting equation is a(n):

• Account

• Transaction

• Journal

• Entry

The name given to an account is its:

• Account Title

• Chart of Accounts

• Capital Account

• Account Number