click below
click below
Normal Size Small Size show me how
Acctg 1 - Ch 1
Maplewood Rice Acctg I Ch 1
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 |