| Flap 1 |
Flap 2 |
| Accounting | A record summarizing all the information pertaining to a single item in the accounting equation. |
| Accounting System | A planned process for providing financial information that will be useful to management. |
| Accounting Records | Organized summaries of a business's financial activities. |
| Financial Statements | Financial reports that summarize the financial condition and operations of a business. |
| Service Business | A business that performs and activity for a fee. |
| Proprietorship | A business owned by one person. |
| Asset | Anything of value that is owned. |
| Equities | 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 showing the relationship among assets, liabilities, and owner's equity. |
| Ethics | The principles of right and wrong that guide an individual in making decisions. |
| Business Ethics | The use of ethics in making business decisions. |
| Transaction | A business activity that changes assets, liabilities, and owner's equity. |
| Account | A record summarizing all the information pertaining to a single item in the accounting equation. |
| Account Title | The name given to an account. |
| Acount Balance | The amount in an account. |
| Capital | The account used to summaraize the owner's equity in a business. |
| Revenue | An increase in owner's equity resulting from the operation of a business. |
| Sales on Account | A sale for which cash will be received at a later date. |
| Expense | A decrease in owner's equity from the operation of a business. |
| Withdrawals | Assets taken out of a business for the owner's personal use. |
| What is the Acounting Equation? | A=L+OE (Assets = Liabilities+Owner's Equity) |
| What acronym do you use to remember what accounting is? | PRAI (Planning, Recording, Analyzing, and Interpreting) |
