Practice Basic Accounting Terminology (4.4) - Mechanics and Terminology of Accounting Systems

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9 questions

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3 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is a transaction?
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Think about buying or selling something.
Question 2.
Define an asset.
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What does the company own?
3Question 3.
What is defined as a financial activity between two parties?
- Transaction
- Account
- Revenue
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Think about buying or selling.
4Question 4.
True or False: Assets are resources owned by the business.
- True
- False
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Consider what a business has.
Question 5.
A company purchases equipment worth $5,000 and pays in cash. What entries are made in the journal?
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Remember the flow of money - what goes in, what goes out.
Question 6.
A business had $20,000 in total assets and $5,000 in total liabilities. Calculate the owner's equity.
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Think of the accounting equation: Assets = Liabilities + Equity.

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