PRINCIPLES OF ACCOUNTING - EXAM 1 STUDY GUIDE

The objective of _________________ is to provide timely and relevant information for users to make decisions.

The main goal of accounting is to ___________ _______________.

The amount received for goods and services is called _______________.

The amount paid to produce goods and services is called _______________.

Profit is calculated as: _______________ – _______________ = Profit

"Profit" is also called "_______ ____________" in accounting terms.

When revenues exceed expenses, this is called ______ __________.

When expenses exceed revenues, this is called _______ _________.

____________ businesses (provide services rather than products)

____________ businesses (sell products from other businesses)