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24 Cards in this Set
- Front
- Back
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Accounting |
Planning, recording, analyzing and interpreting financial information |
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Accounting system |
A planned process for providing financial information that will be useful to management |
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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 right to the assets of the business |
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Liabilities |
An amount owed by a business |
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Owners equity |
The amount remaining 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 |
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Transaction |
A business activity that changes assets liabilities or owners equity |
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Account |
Record summarizing all the information pertaining to a single item in the accounting equation |
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Account title |
The name given to the account |
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Account balance |
Account balance the amount in the account |
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Capital |
The account used to summarize the owners equity in a business |
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Balance sheet |
Financial statement hat reports assets, liabilities and owners equity on a specific date |
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Revenue |
An increase in owners equity resulting from the operation of business |
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Sale on account |
A sale for which cash will be received at a later date |
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Expense |
A decrease in owners equity resulting front the operation of a business |
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Withdrawals |
Assets taken out of a business for the owners personal use |
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T account |
An accounting device used to analyze transactions |
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Debit |
Amount recorded on the left side |
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Credit |
Amount recorded on the right side |
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Normal balance |
The side of the account that is increased |
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Chart of accounts |
A list of accounts used by a business |
