B. C. D. E.
Budgeting SEC Proprietorship Economic Entity Assumption
G. H. I. J.
Assets Equities Expenses Transaction
______ 1. Activities of an entity must be kept separate from its owner’s activities. ______ 2. Consumed assets or services. ______ 3. Ownership is limited to one person. ______ 4. Offers expert accounting service to the general public. ______ 5. Creditor and ownership claims against the assets of the business. ______ 6. A separate legal entity under state laws. ______ 7. Government agency that can mandate accounting rules. ______ 8. Quantifying goals and objectives. ______ 9. Future economic benefits. ______10. Economic events recorded by accountants.
SHORT-ANSWER ESSAY QUESTIONS *S-A E 251 The accounting profession provides many career opportunities for individuals. Identify the major fields that exist in accounting and comment on the major functions performed by individuals in each of these areas.
S-A E 252 The framework used to record and summarize the economic activities of a business enterprise is referred to as the accounting equation. State the basic accounting equation and define its major components. How are business transactions and financial statements related to the accounting equation? S-A E 253 Your friend, Angela, made this comment: