| A | B |
|---|
| accounting | planning, recording, analyzing, and interperating financial information |
| accounting system | a planned 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 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 all assets. |
| accounting equation | an equation showing the relationship among assets, liabilities, and owner's equity. |
| transaction | a business activity that changes assets, liabilites, 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 number assigned to 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. |
