Accounting 1 Chapter 1

Record summarizing all the information pertaining to a single item in the accounting equation.

The sum of the assets & libilities of a business always equal the investment of business owner

Keeping personal and business records separate is an application of the business entity concept

When cash is paid on account, a liability is increased.

The capital account is an owner's equity account.

Assets such as cash and supplies have value because they can be used to operate a business.

Accounting is the language of business.

A business activity that changes assets, liabilities, or owner's equity.

The accounting equation does not have to be in balance to be correct.

Each of the following is a business expense except a payment for ____

All of the following account titles are asset titles except ____.

Business costs in terms of hours to finish project isan application of unit measurement concept