| A | B |
|---|
| Service Business | A business that performs an activity for a fee. |
| Proprietorship | A business owned by 1 person. |
| Busienss Entity | When a business's financial ifnormation is recorded and erported separately from the owner's personal financial information. |
| Asset | Anything of value that is owned. |
| Equities | Finanical rights to teh assets of a business. |
| Liability | An amount owed. |
| Owner's Equity | The amount remaining after the value of all liabiilties is subtracted from the value of all assets. |
| Accounting Equation | Assets = Liabilities + Owner's Equity |
| Transaction | A business activity that chagnes assets, liabilities, or OE. |
| Account | A record summarizing all the information pertaining to a single item in the accounting equation. |
| Unit of Measurement | When business transactions are stated in number that have common values. |
| Account Title | The name given to an account. |
| Capital | The account used to summarize the OE in a business. |
| Balance Sheet | A financial statement that reports assets, liabiltiies, and OE on a specific date. |
| Going Concern | Applied when finanical statements are prepared with the expectation that a busienss will remain in operation indefinitely. |
