| A | B |
|---|
| Accounting | Planning, recording, analyzing, and interpreting financial information. |
| Accounting System | A planned process for providing financial information that will be useful to management. |
| Accounting Records | Organized summaries of a business's financial activities. |
| Service Business | A business that performs an activity for a fee. |
| Proprietorship | A business owned by one person. |
| Business Entity | This accounting concept is applied when a business's financial information is recorded and reported separately from the owner's personal financial information. |
| Asset | Anything of value that is owned. |
| Equities | Financial rights to the asset 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 | Shows the relationship among assets, liabilities, and owner's equity. |
| Ethics | The principles of right and wrong that guide an individual in making decisions. |
| Business Ethics | the use of ethics in making business decisions. |
| Transaction | A business activity that changes assets, liabilities, or owner's equity. |
| Unit of Measurement | This accounting concept is applied when business transactions are stated in numbers that have common values. |
| 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 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. |
| Realization of Revenue | This accounting concept is applied when revenue is recorded at the time goods or services are sold. |
| Expense | A decrease in owner's equity resulting from the operation of a business. |
| Withdrawals | Assets taken out of a business for the owner's personal use. |
