Accounting Vocabulary Chp. 1

  1. Account
    A record summarizing all the information pertaining to a single item in the accounting equation
  2. Account Balance
    The amount in an account
  3. Account Title
    The name given to an account
  4. Accounting
    Planning, recording, analyzing, and interpreting financial information
  5. Accounting equation
    An equation showing the relationship among assets, liabilities, and owners equity
  6. Accounting Records
    Organized summaries of a business's financial activities
  7. Accounting System
    A planned process for providing financial information that will be useful to management
  8. Asset
    Anything of value that is owned
  9. Business Ethics
    The use of ethics in making business decisions
  10. Capital
    The account used to summarize the owners equity in a business
  11. Equities
    Financial rights to the assets of a business
  12. Ethics
    The principals of right and wrong that guide  an individual in making decisions
  13. Expense
    A decrease in owners equity resulting from the operation of a business
  14. Financial Statements
    Financial reports that summarizes the financial condition and operations of a business
  15. Liability
    An amount owed by a business
  16. Owners equity
    The amount remaining after the value of all liabilities is subtracted from the value of all assets
  17. Proprietorship
    A business owned by one person
  18. Revenue
    An increase in owners equity resulting from the operation of a business
  19. Sale on account
    A sale for which cash will be received at a later date
  20. Service Business
    A business that performs an activity for a fee
  21. Transaction
    A business activity that changes assets, liabilities, or owners equity
  22. Withdrawals
    Assets taken out of a business for the owners personal use
Card Set
Accounting Vocabulary Chp. 1
Accounting vocabulary terms