Accounting Fall Semester Test Study Guide

Owner's Equity = Assets - Liability

Liability = Owner's Equity - Assets

Liability = Assets - Owner's Equity

Assets = Liability + Owner's Equity

To interpret financial information

To organize business's financial records

To analyze the financial operations of a business

To summarize the financial conditions of a business

An increase in liabilities resulting from the operation of a business

A decrease in assets resulting from the operation of a business

A decrease in owner's equity resulting from the operation of a business

An increase in owner's equity resulting from the operation of a business

To organize business's financial records

To summarize the financial conditions of a business

To order a bank to pay cash from a bank account

To record a sale on account

Writing the account title

Writing the date

Writing the account number

Writing the amount

To report deposits, withdrawals, and bank balances

To summarize the financial conditions of a business

To transfer funds without the use of checks

To guide the ethical behavior of a company

To restrict further transfer of a check's ownership

To automatically deduct the amount of a purchase from the checking account

To endorse a check

To transfer ownership of a check

To summarize the general ledger information needed to prepare financial statements

To prove the quality of debits and credits in a general ledger

To transfer information from a journal entry to a ledger account

To record transactions in chronological order

To summarize and report financial information for a specific length of time

To transfer funds without the use of checks

To determine the amount of cash agrees with the accounting records

To summarize the financial conditions of a business

To guide the ethical behavior of a company and its employees

To automatically deduct the amount of a purchase from the checking account

To summarize the financial conditions of a business

To restrict further transfer of a check's ownership