| A | B |
|---|
| accounting | Planning, recording, analyzing, and interpreting financial information. |
| accounting system | A planned process for providing financial information that will be useful to management. |
| accounding records | Organized summaries of a business's financial activities. |
| service business | A business that performs an activity for a fee. |
| proprietorship | A business owned by one person. |
| asset | Anything of value that is owned. |
| equities | Financial rights to the assets of a business. |
| liability | An amount owed by a business. |
| owner's equity | The amount remaining after the value of all liabilities is subtracted from the value of the assets. |
| accounting equation | An equation showing the relationship among assets, liabilities, and owner's equity. |
| transaction | A business activity that changes assets, liabilities, or owner's equity. |
| account | A record summarizing all the information pertaining to a single item in the accounting equation. |
| account title | The name given to an account. |
| account balance | The amount in an account. |
| capital | The account used to summarize the owner's equity in a business. |
| balance sheet | A financial statement that reports assets, liabilities, and owner's equity on a specific date. |
