| A | B |
|---|
| Accounting | Planning, recording, analyzing, and interpreting financial information (p. 6) |
| Accounting System | A planned process for providing financial information that will be useful to management. (p. 6) |
| Accounting Records | Organized summaries of a business's financial activities. (p.6) |
| Financial Statements | Financial reports that summarize the financial condition and operation of a business. (p. 6) |
| Service Business | A business that performs an activity for a fee. (p. 6) |
| Proprietorship | A business owned by one person. (p. 6) |
| Asset | Anything of value that is owned. (p.8) |
| Equities | Financial rights to the assets of a business. (p. 8) |
| Liability | An amount owed by a business. (p. 8) |
| Owner's Equity | the amount remaining after the value of all liabilities is subtracted from the value of all assets. (p. 8) |
| Accounting Equation | An equation showing the relationship among assets, liabilities, and owner's equity. (p. 8) |
| Ethics | The principles of right and wrong that guide an individual in making decisions. (p. 8) |
| Business Ethics | The use of ethics in making business decisions. (p. 8) |
| Transaction | A business activity that changes assets, liabilities, or owner's equity. (p. 10) |
| Account | A record summarizing all the information pertaining to a single item in the accounting equation. (p. 10) |
| Account Title | the name given to an account. (p. 10) |
| Account Balance | The amount in an account. (p. 10) |
| Capital | The account used to summarize the owner's equity in a business. (p. 10) |
| Revenue | An increase in owner's equity resulting from the operation of a business. (p. 14) |
| Sale on Account | A sale for which cash will be received at a later date. (p. 14) |
| Expense | A decrease in owner's equity resulting from the operation of a business. (p. 15) |
| Withdrawals | Assets taken out of a business for the owner's personal use. (p. 16) |
