| A | B |
|---|
| account | A record summarizing all the information pertaining to a single item in the accounting equation. |
| account title | The name given to an account. |
| accounting | Planning, recording, analyzing, and interpreting financial information. |
| accounting equation | An equation showing the relationship among assets, liabilities, and owner's equity. |
| accounting records | Organized summaries of a business's financial activities. |
| accounting system | A planned process for providing financial information that will be useful to management. |
| asset | Anything of value that is owned. |
| capital | The account used to summarize the owner's equity in a business. |
| 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. |
| proprietorship | A business owned by one person. |
| service business | A business that performs an activity for a fee. |
| transaction | A business activity that changes assets, liabilities, or owner's equity. |
| expense | A decrease in owner's equity resulting from the operation of 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. |
| withdrawals | Assets taken out of a business for the owner's personal use. |
| chart of accounts | A list of accounts used by a business. |
| credit | An amount recorded on the right side. |
| debit | An amount recorded on the left side. |
| normal balance | The side of the account that is increased. |
| T account | An accounting device used to analyze transactions. |
