| A | B |
|---|
| Planning, recording, analyzing and interpreting financial information. | accounting |
| A planned process for providing financial information that will be useful to management. | accounting system |
| Organized summaries of a business's financial activities. | accounting records |
| Financial reports that summarize the financial condition and operations of a business. | financial statements |
| A business that performs an activity for a fee. | service business |
| A business owned by one person. | proprietorship |
| Anything of value that is owned. | asset |
| Financial rights to the assets of a business. | equities |
| An amount owed by a business. | liability |
| the amount remaining afte rthe value of all liabilities is subtracted from the value of all assets. | owner's equity |
| an equation show the relationship among assets, liabilities, and owner's equity. | accounting equation |
| The principles of right and wrong that guide an individual in making decisions. | ethics |
| The use of ethics in making business decisions. | business ethics |
| A business activity that changes assets, liabilities, or owner's equity. | transaction |
| A record summarizing all the information pertaining to a single item in the accounting equation. | account |
| The name given to an account. | account title |
| The amount in an account. | account balance |
| The account used to summarize the owner's equity in a business. | capital |
| An increase in owner's equity resulting from the operation of a business. | revenue |
| A sale for which cash will be received at a later date. | sale on account |
| A decrease in owner's equity resulting from the operation of a business. | expense |
| Assets taken out of a business for the owner's personal use. | withdrawals |
| An accounting device used to analyze transactions is called a | T account |
| An amount recorded on the left side of a T account | debit |
| An amount located on the right side of a T account | credit |
| The side of the account that is increased | normal balance |
| A list of accounts used by a business | chart of accounts |
| Revenue is recorded at the time of a sale, not necessarily when cash is received | realization of revenue |
| transactions are stated in numbers that have common values | unit of measurement |
| A business's financial information is recorded separately from the owner's | business entity |
| Generally Accepted Accounting Principles | GAAP |
| Lose a Turn | Lose a Turn |
