| A | B |
|---|
| account | a record summarizing all the information pertaining to a single item in the accounting equation |
| accountant | a person who plans, summarizes, analyzes, and interprets accounting information |
| asset | anything of value that is owned |
| balance sheet | a financial statement that reports assets, liabilities, and owner’s equity on a specific date |
| capital | the account used to summarize the owner’s equity in the business |
| credit | an entry recorded on the right side of a T account |
| debit | an entry recorded on the left side of a T account |
| ethics | the principles of right and wrong that guide an individual in making decisions |
| entry | information for each transaction recorded in a journal |
| equities | financial rights to the assets of a business |
| expense | a decrease in owner’s equity resulting from the operation of a business |
| journal | a form for recording transactions in chronological order |
| journalizing | recording transactions in a journal |
| 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 |
| proprietorship | a business owned by one person |
| revenue | an increase in owner’s equity resulting from the operation of a business |
| source document | a business paper from which information is obtained for a journal entry |
| transaction | a business activity that changes assets, liabilities, or owner’s equity |
| withdrawals | assets taken out of the business for the owner’s personal use |
