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27 Cards in this Set
- Front
- Back
- 3rd side (hint)
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The process of planning, recording, analyzing, and interpreting financial information |
Accounting |
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A planned process designed to complete financial data and summarize the results in accounting records and reports |
Accounting system |
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Financial reports that summarize the financial condition and operations of business |
Financial statements |
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A formal report that shows what an individual owns, what an individual owes and the difference between the two |
Net worth statement |
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Anything of value that is owned |
Asset |
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An amount owed |
Liability |
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The difference between personal assets and personal liabilities |
Personal net worth |
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The difference between assets and liabilities |
Equity |
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The principles of right and wrong that guide an individual in making decisions. |
Ethics |
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The use of ethics in making business decisions |
Business ethics |
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A business that performs an activity for a fee |
Service business |
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A business owned by 1 person |
Proprietorship |
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A formal written document that describes the nature of a business and how it will operate |
Business plan |
Business plan |
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Generally accepted accounting principles. The standards and rules that accountants follow while recording and reporting financial activities |
GAAP |
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Financial rights to the assets of a business |
Equities |
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The amount remaining after the value of all liabilities is subtracted from the value of all assets |
Owners equity |
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The equation showing the relationship among assets, liabilities, and owners equity |
Accounting equation |
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Any business activity that changes assets, liabilities, or owners equity |
Transaction |
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A record that summarizes all the transactions pertaining to a single item in the accounting equation |
Account |
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The name given to an account |
Account title |
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The difference between the increases and decreases in an account |
Account Balance |
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An account used to summarize the owners equity in a business |
Capital account |
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A person or business to whom a liability is owed |
Creditor |
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An increase in equity resulting from the sale of goods or services |
Revenue |
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A sale for which payment will be received at a later date |
Sale on account |
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The cost of goods or services used to operate a business |
Expense |
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Assets taken from the business for the owners personal use |
Withdrawals |
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