Accounting Chapter 1

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Vocabulary QuizName _______________

Chapter 1

1. An accounting principle that states that assets should be recorded at their cost.

2.Debts and obligations of a business.

3.Resources owned by a business.

4.The amount by which expenses exceed revenues.

5.An association of two or more persons to carry on as co-owners of a business for profit.

6.The amount of net income kept in the corporation for future use, not distributed to stockholders as dividends.

7.Assets = Liabilities + Stockholders' Equity.

8.Distributions of cash or other assets from an incorporated business to its shareholders.

9.The cost of assets consumed or services used in the process of ongoing operations to generate resources.

10.A financial statement that reports the assets, liabilities, and stockholders' equity at a specific date.

Solutions to Vocabulary Quiz

Chapter 1

1.Cost principle

2.Liabilities

3.Assets

4.Net loss

5.Partnership

6.Retained earnings

7.Accounting equation

8.Dividends

9.Expenses

10.Balance sheet

Multiple Choice Quiz Name _______________

Chapter 1

1.All of the following are characteristics of a sole proprietorship except: a.a business owned by one person.
b.owner has control of the business.
c.a separate legal entity.
d.small owner-operated business.

2.All of the following are characteristics of a corporation except: a.a separate legal entity
b.ownership evidenced by shares of stock.
c.produce eight times more revenue than sole proprietorships and partnerships in the United States. d.owners have unlimited liability....
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