| Accounting, Chapter 1 Terms |
Definition |
| Accounting | Language of Business |
| Account | A record summarizing all the information pertaining to a single item in the accounting equation. |
| Account Title | The name given to an account. |
| Account Balance | The amount in an account. |
| Capital | The account used to summarize the owner's equity in a business. |
| Transaction | A business activity that changes assets, liabilities, or owner's equity. |
| Asset | Anything of value that is owned. |
| Equilites | Financial rights to the assets of a business. |
| Liability | An amount owed by a business. |
| Owner's Equity | The amount remaining after the value of all liabilities is subtracted from the value of all assets. |
| Accounting Equation | An equation that shows the relationship among assets, liabilities, and owner's equity. |
| Revenue | An increase in owner's equity resulting from the operation of a business. |
| Sale on Account | A sale for which cash will be received at a later date. |
| Expense | A decrease in owner's equity resulting from the operation of a business. |
| Withdrawal | Decreases owner's equity. |
