Vocab

Question 1

Bookkeeping

Answer 1

process of recording business transactions

Question 2

Asset

Answer 2

anything of value owned/used by a business

Question 3

Liability

Answer 3

amount owed by a business

Question 4

Owner’s Equity

Answer 4

amount left over from assets after liabilities have been subtracted

Question 5

Accounting Equation

Answer 5

basic equation showing relationship among the assets, liabilities, and owner’s equity

Question 6

The Accounting Equation

Answer 6

Assets = Liabilities + Owner’s Equity

Question 7

Account

Answer 7

form of recording and summarizing business transactions

Question 8

Account Title

Answer 8

name given to each account

Question 9

Account Balance

Answer 9

difference between the debits and credits in an account

Question 10

Transaction

Answer 10

any activity occuring in the business that changes part of the accounting equation