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22 Cards in this Set
- Front
- Back
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Accounting |
Planning, recording, analyzing, and interpreting financial information accounting system |
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Accounting system |
A planned process for providing financial information that will be useful to management a |
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Accounting records |
Organized summaries of a business’s financial activity |
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Financial statements |
Financial reports that summarize the financial condition and operation of a business |
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Service business |
A business that performs an activity for a fee |
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Proprietorship |
A business owned by one person |
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Asset |
Anything of value that is owned |
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Equities |
Financial rights to the assets of a business |
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Liability |
An amount owed by a business |
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Owner's equity |
The amount remained after the value of all liabilities is subtracted from the value of all assets |
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Accounting equation |
An equation showing the relationship among assets, liabilities, and owners equity Assets = Liabilities + Owner's Equity |
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Ethics |
The principles of right and wrong that guide an individual in making decisions |
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Transaction |
A business activity that changes assets, liabilities, or owner's equity |
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Account |
A record summarizing all the information pertaining to a single item in the accounting equation |
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Account title |
The name given to an account |
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Account balance |
The amount in an account |
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Capital |
The account used to summarize the owner's equity in a business |
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Revenue |
An increase in owner's equity resulting from the operation from a business |
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Sale on account (Charge sale) |
A sale for which cash will be received at a later date |
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Expenses |
A decrease in owner's equity resulting from the operation of a business |
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Withdrawals |
Asset take out of a business for the owner's personal use |
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Business ethics |
The use of ethics in making business decisions |
