Chapter 1 Accounting Vocabulary Third 7 Flashcards
1
Q
Financial Statements
A
Financial reports that summarize the financial condition and operations of a business
2
Q
GAAP
A
Generally Accepted Accounting Principles. the standards and rules that accountants follow while recording and reporting financial activities
3
Q
Liability
A
An amount owed
4
Q
Net worth Statement
A
A formal report that shows what an individual owns, what an individual owes, and the difference between the two
5
Q
Owner’s Equity
A
The amount remaining after the value of all liabilities is subtracted from the value of all assets
6
Q
Personal Net Worth
A
The difference between personal assets and personal liabilities
7
Q
Proprietorship
A
A business owned by one person
