| Question |
Answer |
| accounting |
planning, recording, analyzing, and interpreting financial information |
| 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 |
| 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 |
| 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 |
| transaction |
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 accounting equation |
| account title |
a 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 |
| balance sheet |
a financial statement that reports assets, liabilities, and owner's equity on a specific date |
mr. charles11
