chapter 1
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| answers |
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| plannning,recording,analyzing, & interpreting financial information |
accounting |
| planned process for providing financial information that will be useful to management |
accounting system |
| organized summaries of a business's financial activities |
accounting records |
| a business that performs an activity for a fee |
service business |
| a business owned by one person |
proprietorship |
| anything of value that is owned |
asset |
| financial rights to the assets of a business |
equities |
| an amount owed by a business |
liability |
| amount remaining after the value of all liabilities is subtracted from the value of all assets |
owner's equity |
| equation showing the relationship among assets; liabilities; & owner's equity |
accounting equation |
| a business activity that changes assets, liabilities; & owner's equity |
transaction |
| a record summarizing all the information pertaining to a single item in the accounting equation |
balance sheet |
| the name given to an account |
account title |
| the amount in an account |
account balance |
| the account used to summarize the owner's equity in a business |
capital |
| a financial statement that reports assets; liabilities; and owner's equity on a specific date |
account |
| accounting is a _______ of business |
language |
| you should keep personal & business records _______ |
separate |
| the relationship among assets; liabilities; & owner's equity can be written as _______ |
an equation |
| the accounting equation ALWAYS has to be _________ |
in balance |
| owners equity account |
capital account |
| when an item is bought and paid for at a later date |
buying on account |
| when cash is paid on account; what is increased? |
liability |
| on a balance sheet a single line means______ |
amounts are added or subtracted |
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