Question

In this exercise you will choose a term from the column on the left and Type it beside the appropriate definition in the space provided. While you are allowed to consult your notes, time is limited so do as many as you can first so that you do not run out of time.

Scrambled Terms	Write the appropriate term beside the definition	Definition
The Accounting Equation		Purchase of resources for the business.
Debit		Acquiring funds for the business.
Assets		Day to day business activities carried out to produce revenue for the company.
Liabilities		The positive outcome of revenue minus expenses.
Equity		The positive outcome of assets minus liabilities.
Operating Decisions		Resources the business owns.
Revenues		A obligation to pay someone or some institution. Debt.
Capital Asset		Money earned by the company from operations.
Investing Decisions		Resources used up to create revenue.
Credit		Money paid into a business by its owners.
Financing Decisions		An obligation to pay someone or some institution within a year.
Profit		A resource that is expected to be useful for more than a year.
Expense		Assets = Liabilities + Owners’ Equity
Wealth		Left hand side of an account.
Current Liability		Right hand side of an account.

Answer 1

accounting equation	Assets = Liabilities + Owners’ Equity
debit	Left hand side of an account.
assets	Resources the business owns
liabilities	A obligation to pay someone or some institution. Debt.
equity	The positive outcome of assets minus liabilities.
operating decisions	Day to day business activities carried out to produce revenue for the company.
revenues	Money earned by the company from operations
capital assets	A resource that is expected to be useful for more than a year.
investing decisions	Purchase of resources for the business.
credit	Right hand side of an account.
financing decisions	Money paid into a business by its owners.
profit	The positive outcome of revenue minus expenses.
expenses	Resources used up to create revenue.
wealth	Acquiring funds for the business
current liability	An obligation to pay someone or some institution within a year