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AccountingChapter1
Ms. Boyd's accounting vocab
Term | Definition |
---|---|
Accounting | Planning, recording, analyzing, and interpreting financial information. (pg.6) |
Accounting system | A planned process for providing financial information that will be useful to management. (pg. 6) |
Accounting Records | Organized summaries of a business's financial activities. (pg.6) |
Financial statements | Financial reports that summarize the financial condition and operations of a business. (pg.6) |
Service Business | A business that performs an activity for a fee. (pg.6) |
Proprietorship | A business owned by one person (pg.6) |
Asset | Anything with value that is owned. (pg.8) |
Equitites | Financial rights to the assets of a business. (pg.8) |
Liability | An amount owed by a business (pg.8) |
Owner's Equity | The amount remaining after the value of all liabilities is subtracted from the value of all assets.(pg.8) |
Accounting Equation | Assets=Liabilities+Owner's Equity (pg.8) |
Ethics | The principles of right and wrong that guide an individual in making decisions. (pg.8) |
Transaction | A business activity that changes assets, liabilities or owner's equity. (pg.9) |
Account | A record summarizing all the information pertaining to a single item in the accounting equation (pg.9) |
Account Title | The name given to an account. (pg.9) |
Account Balance | The amount in a account. (pg. 9) |
Caplital | The account used to summarized the owner's equity in a business. (pg.9) |
Revenue | An increase in owner's equity resulting from the operation of a business. (pg.14) |
Sale on Account | A sale for which cash will be received at a later date. (pg.14) |
Expense | A decrease in owner's equity resulting from the operation of a business. (pg.15) |
Withdrawals | Assets taken out of a business for the owner's person use. (pg.16) |
Accountant | a person who plans, summarizes, analyzes, and interprets accounting information. |