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26 Cards in this Set
- Front
- Back
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accounting |
language of business planning, recording, analyzing, and interpreting financial info |
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accounting system |
planned process for providing financial info that will be useful to management |
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accounting records |
organized summaries of a business' financial activities |
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financial statement |
financial reports that summarize the financial condition and operations of a business |
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service business |
business that performs an activity for a fee |
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proprietorship |
business owned as one person sole proprietorship |
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advantages of proprietorship |
ease of formation, total control, profits not shared |
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disadvantages of proprietorship |
limited resources, unlimited liability, limited expertise, limited life |
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business entity |
accounting concept that states that a business' financial information is recorded and reported separately from the owners personal financial info |
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asset |
anything of value that is owned |
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equities |
financial rights to the assets of a business 2 types: liabilities, owners equity |
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liability |
an amount owed by a business |
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owners equity |
amount remaining after the value of all liabilities are subtracted from the value of all assets |
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ethics |
principles of right and wrong that guide an individual in making decisions |
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business ethics |
use of ethics in making business decisions |
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transactions |
business activity that changes assets, liabilities, or owners equity |
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unit of measurement |
concept business transactions are stated in numbers that have common values- using a common measurement |
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account |
record summarizing all the info pertaining to a single item in the accounting equation |
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account title |
name given to an account |
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account balance |
the amount in an account |
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capital |
account used to summarize the owners equity in a business |
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revenue |
increase in owners equity resulting from the operation of a business |
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sale on account |
sale for which cash will be received at a later date (accounts receivables) |
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witdrawals |
assets taken out of a business for the owners personal use |
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expense |
decrease in owners equity resulting from the normal operations of a business |
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realization of revenue |
concept applied when revenue is recorded at the same time goods and services are sold |
