Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Accounting Ch. 1
| Term | Definition |
|---|---|
| Accounting | The process of planning, recording, analyzing, and interpreting financial information |
| Accounting system | A planned process designed to compile financial data and summarize the results in accounting records and reports |
| Financial statements | Financial reports that summarize the financial condition and operations of a business |
| Net worth statement | A formal report that shows what an individual owns, what an individual owes, and the difference between the two |
| Asset | Anything of value that is owned |
| Liability | An amount owed |
| Personal new worth | The difference between personal assets and personal liabilities |
| Equity | The difference between assets and liabilities |
| Ethics | The principles of right and wrong that guide an individual in making decisions |
| Business ethics | The use of ethics in making business decisions |
| Service business | A business that performs an activity for a fee |
| Proprietorship | A business owned by one person |
| Business plan | A formal written document that describes the nature of a business and how it will operate |
| GAAP | Generally Accepted Accounting Principles. The standards and rules that accountants follow while recording and reporting financial activities |
| 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 all assets |
| Accounting equation | The equation showing the relationship among assets, liabilities, and owner's equity |
| Transaction | Any business activity that changes assets, liabilities, or owner's equity |
| Account | A record that summarizes all the transactions pertaining to a single item in the accounting equation |
| Account title | The name given to an account |
| Account balance | The difference between the increases and decreases in an account |
| Capital account | An account used to summarize the owner's equity in a business |
| Creditor | A person or business to whom a liability is owed |
| Revenue | An increase in equity resulting from the sale of goods or services |
| Sale on account | A sale for which payment will be received at a later date |
| Expense | The cost of goods or services used to operate a business |
| Withdrawals | Assets taken from the business for the owner's personal use |
Created by:
Krisbeats
Popular Accounting sets