200120
| Question | Answer |
| The money that a business owes to its creditors. This money is a liability of the business. | accounts payable |
| The money that is owed to a business by its customers. This money is considered an asset of the business. | accounts recievable |
| Anything owned that has a dollar value. | asset |
| A statement showing the financial position (the assets, liabilities, and capital) of an individual, company, or other organization on a certain date. | balance sheet |
| The accounting for a business or organization be kept separate from the personal affairs of its owner, or from any other business or organization. | business entity concept |
| The difference between the total assets and total liabilities of a business. Same as Net worth, Owner's equity. | capital net worth owner's equity |
| The accounting for a business is based on the assumption that the business will continue to operate, unless it is known that it will not. | continuing concern concept going concern concept |
| Anyone who is owed money by the business. | creditor |
| Anyone who owes money to the business. | debtor |
| The status of a business, as represented by the assets, liabilities, and owner's equity. | financial position |
| The equation that states that total assets are equal to total liabilities plus owner's equity. | fundamental accounting equation |
| Guidelines established by professional accountants to be followed in the preparation of accounting records and financial statements. | generally accepted accounting principles GAAP |
| A debt of an individual, business, or other organization. | liability |
| The sale of the assets of a business for cash. | liquidation |
| The ease with which an asset can be converted into cash. | liquidity |
| Accounting for a business should be fair and reasonable. Assets or profits are neither overstated nor understated. | principle of conservatism |
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