| Question |
Answer |
| Accounting |
Planning, recording, analyzing, and interpreting financial information. |
| Accounting system |
A planned process fro provding financial information that will be useful to management. |
| accounting records |
Organized summaries of a business's finamcial activities. |
| financial statements |
Financial reports that summarize the financial condition and operations of a business. |
| service business |
A business that performs an 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 |
| owner's equity |
The amount remaining after the value of all liabilities is subtracted from the value of assets. |
| accounting equation |
An equation showing the relationship among asset, liabilities, and owner's equity. |
| ethics |
The principles of right and wrong the guide an individual in making decisions. |
| business ethics |
The use of ethics in making business decisions. |
| transactions |
A business activity that changes assets, liabilities, or owner's equity. |
| account |
A record summarizing all the information pertaining to a single item in the accountin equation. |
| account title |
The name given to an account. |
| acccount balance |
The amount in an account. |
| capital |
The account used to summarize the owner's equity ina business. |
| revenue |
An increase in owner's equity resulting from the operation of a business. |
| sale on account |
A sale for which cash will be recived at a later date. |
| expense |
A decrease in owner's equity resulting from the operation of a business. |
| withdrawals |
Assets taken out of a business for the owner's personal use. |
500 Words
