Accounting HW CH1P1 SB

Given the following list of accounts, identify which are classified as liabilities

- Accounts Payable - Notes Payable - Wages Payable - Taxes Payable

Which statements below define a liability?

- An amount owed to a creditor - A creditor's claims against the assets of a business - The company obligations to provide assets, products or services to others

Which of the statement(s) below define(s) an asset?

- An amount owned - Resources with expected future benefits - Resources controlled by the business

Which statements below define equity?

- Equity is equal to assets minus liabilities. - Claims of the owner(s) on the assets of the business.

The definition of expenses includes which of the following statements?

- Expenses are the costs of providing products and services to customers. - Expenses decrease equity.

Given the following list of accounts, identify which are classified as assets

- Land - Supplies - Cash - Equipment - Accounts Receivable

Generally accepted accounting principles (GAAP) wants information to have:

- Relevance - Faithful Representation

From the following statements, identify the correct definition of a liability.

A company's obligation to provide assets, products or services to others.

Identify what accounting is by selecting the correct statement.

Accounting is a system that identifies, records and communicates financial information.

Why does a business need accounting information?

Accounting records business transactions and communicates financial information.

Given the following lists of accounts, choose the one that contains only assets.

Cash, Building, Supplies, Accounts Receivable

Expenses

Decrease equity and are the cost of providing products and services to customers.

Dividends

Decrease equity and are the outflows of assets from the company to the shareholders.

From the following statements, identify the correct definition of equity.

Equity refers to the claims of the owners on the assets of a business

Common Stock

Increase equity and are assets owners contribute to the business.

Revenues

Increase equity from sales of products and services to customers.

Which statement below defines accounting?

It identifies, records, and communicates business transactions.

Given the following lists of accounts, choose the one that contains only liabilities.

Taxes Payable, Accounts Payable, Wages Payable

What are Generally Accepted Accounting Principles?

The concepts and rules that govern financial accounting practice.

It is the total dollar amount of debt owed to creditors of the business.

This is a liability

They are resources owned by the business.

This is an asset

Identify the correct definition of an asset:

a resource that a business owns or controls