| A | B |
|---|
| Service Business | A business that performs an activity for a fee. |
| Proprietorship | A business owned by one person. |
| Asset | Anything of value that is owned. |
| 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. |
| Accounting Equation | An equation showing the relationship among assets, liabilities, and 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 the business. |
| Balance Sheet | A financial statement that reports assets, liabilities, and owner’s equity on a specific date. |
| Cash and Owner's Capital | Received cash from owner as an investment. |
| Cash and Supplies | Paid cash for supplies. |
| Cash and Prepaid Insurance | Paid cash for insurance. |
| Supplies and Liability Account | Bought supplies on account. |
| Cash and Liability Account | Paid cash on account. |
