| A | B |
|---|
| accounting | planning, recording, analyzing, and interpreting financial information |
| accounting records | organized summarizes of a business' financial activities |
| accounting system | a planned process for providing financial information that will be useful to management |
| account | a record summarizing all the information pertaining to a single item in the accounting equation |
| account balance | the amount in an account |
| account title | the name given to an account |
| accounting equation | an equation showing the relationship among assets, liabilities, and owner's equity |
| 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 |
| 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 |
| Going Concern | the accounting concept that refers to preparing financial statements with the expectation that a business will remain in operation indefinitely |
| Business Entity | the accounting concept that refers to keeping financial records for a business and for its owner's personal belongings separate |
| Unit of Measurement | the accounting concept that in the United States refers to recording and reporting financial information in dollars and cents |
| What kind of accounts are Cash, Supplies, Prepaid Insurance, Accounts Receivable? | Asset Accounts |
| What kind of accounts are accounts like AP-Butler Cleaning Supplies, AP-Dale Office Supplies? | Liability Accounts |
| What kind of account is Ben Furhman, Capital | Owner's Equity Account |
| What accounts are affected and how by paid cash for supplies? | Supplies Up, Cash Down |
| What accounts are affected and how by paid cash on account to Rochester Supplies? | Cash Down, AP-Rochester Supplies Down |
| What accounts are affected and how by received cash from owner as an investment? | Cash Up, Capital Up |
| What accounts are affected and how by paying cash for insurance? | Cash Down, Prepaid Insurance Up |
| What accounts are affected and how by a buying supplies on account transaction from Rochester Supplies? | Supplies Up, AP - Rochester Supplies Up |
| business ethics | The use of ethics in making business decisions |
| ethics | The principles of right and wrong that guide an individual in making decisions |
| expense | A decrease in owner's equity resulting from the operation of a business |
| financial statements | Financial reports that summarize the financial conditions and operations 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 the business for the owner's personal use |
