____ are the rules accountants follow when recording and reporting accounting information.
What is GAAP?
100
A(n) ____ buys finished goods and sells them to individuals or other businesses.
What is a merchandising business?
100
Assets = Liabilities + Owner's Equity
What is the accounting equation?
100
Anything of value that is owned or controlled by an individual or a business
What is property?
100
Investment of cash by owner
What is cash in bank and capital.
200
A(n) _____ is a period of time covered by an accounting report
What is accounting period?
200
A(n) ____ will have two or more people agree to be co owners
What is a partnership?
200
Economic event that causes a change in assets, liabilities, owner's equity
What is a business transaction?
200
Any property or item of value owned by a business
What is an asset?
200
Paid phone bill using check
What is cash in bank and capital (expense)
300
The ____ is designed to collect, document, and report on the financial transactions affecting the business.
What is the accounting system?
300
A(n) ____ will receive fees as their source of revenues
What is a service business?
300
Account that represents the owner's investment
What is the capital account?
300
measured by the dollar amount of the owner’s claims to the total assets of the business
What is owner's equity?
300
bought supplies on account
What is supplies and accounts payable
400
Under the ___ accounting assumption, a business owner must keep the financial records for the business separate from personal records.
What is business entity?
400
A(n) ____ buys raw materials, uses labor and machinery to transform them into finished products and sells the finished products to individuals or other businesses.
What is manufacturing business?
400
Amount owed to business's creditors
What are liabilities?
400
The debts of a business are called its ____.
What is accounts payable or liabilities?
400
withdrew cash by owner for personal use
What is cash in bank and capital
500
Under the _____ accounting assumption, a business has the ability to survive and operate indefinitely.
What is going concern?
500
A(n) ____ is a business organization that must get permission from the state to operate.
What is a corporation?
500
Income earned from the sale of goods and services.
What is revenue?
500
Account that is increased when a customer purchases a product or service on account. (accumulated in money owed to the business)