| A | B |
|---|
| Service Business | business that performs a service 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 |
| accounting equation | assets=Liabilities + Owners Equity |
| transaction | a business activity that changes assets, liabilities, or owners equity |
| account | a record summarizing all the information of a single item in the accounting equation |
| account balance | the amount in an account |
| capital | the account used to summarize the owner's equity in a business |
| revenue | an increase in owner's equity resulting from the operation of a business |
| sale on account | a sale for which cash will be recieved at a later date |
| expense | a decrease in owenrs equity resulting from the operation of a business |
| withdrawals | assets taken out of a business for the owner's personal use |
| T account | accounting device used to analyze transactions |
| Debit | amount recorded on the left side of the T account |
| Credit | amount recorded on the right side of the T account |
| Normal Balance | side of the account that is increased |
| Journal | form for recording transactions in chronological order |
| entry | information for each transaction recorded in a journal |
| check | business form ordering a bank to pay cash from a bank account |
| invoice | a form describing the good or services sold, the quantity, and the price |
| receipt | a business form giving written acknowledgement for cash recieved |
| ledger | a group of accounts |
| posting | transferring information from a journal entry to a ledger account |
| endorsement | a signature or stamp on the back of a check transferring ownership |
| blank endorsment | endorsement consisting only of the endorser's signature |
| special endorsement | endorsement indicating a new owner of a check |
| restrictive endorsement | endorsement restricting further transfer of a check's ownership |
| work sheet | form used to summarize the genral ledger information needed to prepare financial statements |
| trial balance | proof of the equality of debits and credits in a general ledger |
