| A | B |
|---|
| planning, recording, analyzing, interpreting financial information | accounting |
| A planned process for providing financial information that will be useful to management | accounting system |
| organized summaries of a business's financial activites | accounting records |
| financial reports that summarize the financial condition and operations of a business | financial statements |
| a business that performs an activity for a fee | service business |
| a business owned by one person | proprietorship |
| anything of value that is owned | asset |
| financial rights to the assets of a business | equities |
| an amount owed by a business | liability |
| the amount remaining after the value of all liabilities is subtracted from the value of all assets | owneers equity |
| an equation showing the relationship among assets, liabilities, and owners equity | accounting equation |
| the principles of right and wrong that guide an individual in making decisions | ethics |
| the use of ethics in making business decisions | business ethics |
| a business activity that changes assets, liabilities, or owners equity | transaction |
| a record summarizing all the information pertaining to a single item in the accounting equation | account |
| the name given to an account | account title |
| the amount in an account | account balance |
| the account used to summarize the owners equity in a business | capital |
| an increase in owners equity resulting from the operation of a business | revenue |
| a sale for which cash will be received at a later date | sale on account |
| a decrease in owners equity resulting from the operation of a business | expense |
| assets taken out of a business for the owners personal use | withdrawals |
