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