| A | B |
|---|
| 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 give to an account |
| accounting | Planning, recording, analyzing , and interpreting financial information |
| accounting equation | An equation showing the relationship among assets, liabilities, and owner's equity |
| accounting system | A planned process for providing financial information that will be useful to management |
| asset | Anything of value that is owned |
| business ethics | The use of ethics in making business decisions |
| business plan | A formal written document that describes the nature of a business andhow it will operate |
| capital account | The account used to summarize the owner's equity in the business |
| creditor | A person or business to whom a liability is owed |
| equities | Financial rights to the assets of a business |
| equity | The difference between assets and liabilities |
| 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 business |
| GAAP | The standards and rules that accountants follow while recording and reporting financial activities |
| liability | An amount owed by a business |
| net worth statement | A formal report that shows what an individual owns, what an individual owes, and the difference between the two |
| owner's equity | The amount remaining after the value of all liabilities is subtracted from the value of all assets |
| personal net worth | The difference between personal assets and personal liabilities |
| proprietorship | A business that is owned by one person |
| 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. |
| service busienss | A business that performs an activity for a fee |
| transaction | A business activity that changes assets, liabilities, or owner's equity |
| withdrawals | Assets taken out of a business for the owner's personal use |
