| A | B |
|---|
| Accounting | planning, recording, analyzing, and interpreting financial information |
| Accounting system | A planned process for providing financial information tha will be useful to management |
| Accounting records | organized summaries of a business financial activies |
| Service business | A business that performs a service for a fee |
| Proprietorship | A business owned by one person |
| Asset | Anything of value that is owned |
| Equities | Finacial rights to the assets of a business |
| Liability | An amount owed by a business |
| Owner’s equity | the amont remaining after the vale of all liabilities s subtracted from the value of all assests. |
| Accounting Equation | assets = liabilities + owner’s equity |
| Transaction | a business activity that changes assets, liabilities or owner’s equity |
| Accout | a record summarizing all the information about a single item in an accounting equation |
| Account Title | the name given to the account |
| Account Balance | the amonut in an account |
| Capital | the amount 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 |
