| A | B |
|---|
| Balance Sheet | A financial statement that reports assets, liabilities and owner's equity on a specific date |
| Accounting | Planning, recording, analyzing and interpreting financial information |
| 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 |
| Accounting System | A planned process for provding financial information that will be useful to management |
| Account Balance | The amount in an account |
| Capital | The account used to summarize the owner's equity in a business |
| Owner's Equity | The amount remaining after the value of all liabilities is subtracted from the value of all assets |
| Account | A record summarizing all the information pertaining to ao single item in the accounting equation |
| Accounting records | Organized summaries of a business's financial activities |
| Asset | Anything of value that is owned |
| Propietorship | A business owned by one person |
| Equities | Total financial claims to the assets of a business. |
| Service Business | A business that performs an activity for a fee |
| Liability | An amount owed by a business |
| Account Title | The name given to an account |
| Expense | The price a business pays for goods or services. |
| Withdrawal | Money taken from the business by the owner for personal use. |
| Revenue | Money that a business earns from selling goods or services. |
| Business Transaction | An economic event for a business. |
| Property Rights | Financial claims to property. |
| Accounting Period | The period of time covered by an accounting report. |
| Investment | Money or other property paid out to produce profit. |
| Property | anything of value that a person or business owns and therefore controls. |
| Credit | An agreement to pay for a purchase at a later time; an entry on the right side of an account. |
| Debit | An entry on the left side of an account. |
| T Account | A visual representation of a ledger account; it's the tool used to analyze a transaction. |
| Normal Balance | The increase side of an account. The word normal here means usual. |
| Chart of Accounts | A list of accounts used by a business. |
| Financial Statements | REports prepared to summarize the changes from business transactions that occur during an accounting period. |
| Sale on Account | The sale of merchandise that will be paid for at a later date. |
| Sole Proprietorship | A business owned by one person. |
