Chapter 1- both Flashcards
account
a record summarizing all the information pertaining to a single item in the accounting equation
a record summarizing all the information pertaining to a single item in the accounting equation
account
account balance
amount in an account
amount in an account
account balance
name given to an account
account title
account title
name given to an account
planning, recording, analyzing, and interpreting financial information
accounting
Accounting
planning, recording, analyzing, and interpreting financial information
accounting equation
an equation showing the relationship among assets, liabilities, and owner’s equity
an equation showing the relationship among assets, liabilities, and owner’s equity
accounting equation
accounting records
organized summaries of a business’s financial activities
organized summaries of a business’s financial activities
accounting records
a planned process for providing financial information that will be useful to management
accounting system
accounting system
a planned process for providing financial information that will be useful to management
asset
anything of value that is owned
anything of value that is owned
asset
business ethics
the use of ethics in making business decisions
the use of ethics in making business decisions
business ethics
equities
financial rights to the assets of a business
financial rights to the assets of a business
equities
capital
the account used to summarize the owner’s equity in a business
the account used to summarize the owner’s equity in a business
capital
ethics
the principles of right and wrong that guide an individual in making decisions
the principles of right and wrong that guide an individual in making decisions
ethics
expense
a decrease in owner’s equity resulting from the operation of a business
a decrease in owner’s equity resulting from the operation of a business
expense
financial statements
financial reports that summarize the financial condition and operations of a business
financial reports that summarize the financial condition and operations of a business
financial statements
liability
an amount owed by a business
an amount owed by a business
liability
owner’s equity
the amount remaining after the value of all liabilities is subtracted from the value of all assets
the amount remaining after the value of all liabilities is subtracted from the value of all assets
owner’s equity
proprietorship
a business owned by one person
a business owned by one person
proprietorship
revenue
an increase in owner’s equity resulting from the operation of a business
an increase in owner’s equity resulting from the operation of a business
revenue
sale on account
a sale for which cash will be received at a later date
a sale for which cash will be received at a later date
sale on account
service business
a business that performs an activity for a fee
a business that performs an activity for a fee
service business
transaction
a business activity that changes assets, liabilities or owner’s equity
a business activity that changes assets, liabilities or owner’s equity
transaction
withdrawals
assets taken out of a business for the owner’s personal use
assets taken out of a business for the owner’s personal use
withdrawals
