Accounting definition (correct answers)
Accounting correct answers the process of planning, recording, analyzing and
interpreting financial information.
Accounting system correct answers a planned process designed to compile financial
data and summarize the results in accounting records and reports
Financial statement correct answers financial reports that summarize the financial
condition and operations of a business
Net worth statement correct answers formal report that shows what an individual owns,
what an individual owes, and the difference between the two
Asset correct answers Anything of value that is owned
Liability correct answers An amount owed
Personal net worth correct answers The difference between personal assets and
personal liabilities
Equity correct answers The difference between assets and liabilities
Ethics correct answers The principles of right and wrong that guide an individual in
making decisions
Business ethics correct answers the use of ethics in making business decisions
Service Business correct answers A business that performs an activity for a fee
Proprietorship correct answers A business owned by one person
Business plan correct answers A formal written document that describes the nature of a
business and how it will operate.
GAAP correct answers Generally Accepted Accounting Principles. The standards and
rules the accountants follow while recording and reporting financial activities.
Equities correct answers Financial rights to the assets of a business
Owners Equity correct answers the amount remaining after the value of all liabilities is
subtracted from the value of all assets
Accounting Equation correct answers the equation showing the relationship among
assets, liabilities, and owers equity
Accounting correct answers the process of planning, recording, analyzing and
interpreting financial information.
Accounting system correct answers a planned process designed to compile financial
data and summarize the results in accounting records and reports
Financial statement correct answers financial reports that summarize the financial
condition and operations of a business
Net worth statement correct answers formal report that shows what an individual owns,
what an individual owes, and the difference between the two
Asset correct answers Anything of value that is owned
Liability correct answers An amount owed
Personal net worth correct answers The difference between personal assets and
personal liabilities
Equity correct answers The difference between assets and liabilities
Ethics correct answers The principles of right and wrong that guide an individual in
making decisions
Business ethics correct answers the use of ethics in making business decisions
Service Business correct answers A business that performs an activity for a fee
Proprietorship correct answers A business owned by one person
Business plan correct answers A formal written document that describes the nature of a
business and how it will operate.
GAAP correct answers Generally Accepted Accounting Principles. The standards and
rules the accountants follow while recording and reporting financial activities.
Equities correct answers Financial rights to the assets of a business
Owners Equity correct answers the amount remaining after the value of all liabilities is
subtracted from the value of all assets
Accounting Equation correct answers the equation showing the relationship among
assets, liabilities, and owers equity
