Untitled Flashcard Set
Chapter 1 Vocabulary | ||
Vocabulary Word | Definition | |
1.1 | Accounting | Planning, recording, analyzing, and interpreting financial information |
1.1 | Accounting System | A planned process for providing financial information that will be useful to management |
1.1 | Accounting Records | Organized summaries of a business’s financial activities |
1..1 | Financial Statements | Financial reports that summarize the financial condition and operations of a business |
1.1 | Service Business | A business that performs an activity for a fee |
1.1 | Proprietorship | A business owned by one person |
1.1 | Asset | Anything of value that is owned |
1.1 | Equities | Financial rights to the assets of a business |
1.1 | Liability | An amount owed by a business |
1.1 | Owner’s Equity | The amount remaining after the value of all liabilities is subtracted from the value of all assets |
1.1 | Accounting Equation | An equation showing the relationship among assets, liabilities, and owner’s equity |
1.1 | Ethics | The principles of right and wrong that guide and individual in making decisions |
1.1 | Business Ethics | The use of ethics in making business decisions |
1.2 | transaction | a business transaction that changes the assets, liabilities, or owners equity |
1.2 | Account | a record summarizing all the information pertaining to a single item in the accounting equation |
1.2 | Account title | the name given to an account |
1.2 | Account balance | amount of money in the account |
1.2 | capital | the account used to summarize the owners equity in a business |
1.3 | revenue | increase in owner's equity resulting from the operation of the business |
1.3 | Sale on account | a sale for which cash will be received at a later date |
1.3 | expense | a decrease in owner's equity resulting from the operation of a business |
1.3 | withdrawal | assets taken out of a business for the owner’s personal use |