| A | B |
|---|
| Accounting | planning, recording, analyzing, and interpreting financial information. |
| Accunting System | planed process for providing financial information that will be useful to management |
| Accounting Records | organized summaries of a business's financial activities |
| Service business | a business that performs an activivity for a fee. |
| Proprietorship | also known as a sole proprietorship because it is 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 | amount remaining after the value of all liabilities is subtracted from the value of all assets. |
| Accounting Equation | an equation showing the relationship amoung assets, liabilities, and owner's equity. |
| Assets | Liabilities+Owner's Equity. |
| Transaction | 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 | name given to an account. |
| Account Balance | amount of money in an account. |
| Capital | 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 certain date. |
