Chapter 1 Terms
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| Accounting, Chapter 1 Terms |
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| Definition |
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| 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. |
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