| A | B |
|---|
| Accounting | The planning, recording, analyzing, and interpreting of financial information |
| Accounting System | The process for providing financial information that will be useful to management |
| Accounting Records | Organized summaries of a business’s financial activities |
| Financial Statements | Reports that summarize the financial condition and operations of a business |
| Asset | Anything of value that is owned |
| Equities | The financial rights to the assets of a business |
| Liability | An amount owed by a business |
| Owners Equity | The amount remaining after the value of all liabilities is subtracted from the value of all assets |
| Accounting Equation | Shows the relationship among assets, liabilities, and owner’s equity. It is most often stated as: Assets = Liabilities + Owner’s Equity |
| Transaction | A 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 | The name given to an account |
| 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 received at a later date |
| Expense | A decrease in the owner’s equity resulting from the operation of a business |
| Withdrawals | Assets taken out of a business for the owner’s personal use |
| T account | An accounting device used to analyze transactions |
| Debit | An amount recorded on the left side of a T-account |
| Credit | An amount recorded on the right side of a T-account |
| Normal Balance | The side of the account that is increased |
| Chart of Accounts | A list of accounts used by a business |
| Service Business | A business that performs an activity for a fee |
| Proprietorship | A business owned and controlled by one owner |
