| A | B |
|---|
| Accounting | planning, recording, analyzing, and interpreting financial information |
| Accounting system | planned process for providing financial information that will be useful to management |
| Accounting records | organized summaries of a business’s financial activities |
| Service Business | business that performs an activity for a fee |
| Proprietorship | business owned by one person |
| Asset | anything of value that is owned |
| Equities | financial rights to the assets of a business |
| Liability | an amount owed by a business |
| Owner’s Equity | amount remaining after the value of all liabilities is subtracted from the value of all assets |
| Accounting Equation | equation showing the relationship among assets, liabilities, and owner’s equity |
| Transaction | business activity that change assets, liabilities, or owner’s equity |
| Account | record summarizing all the information pertaining to a single item in the accounting equation |
| Account title | name given to tan account |
| Account balance | the amount in an account |
| Capital | account used to summarize the owner’s equity in a business |
| Balance sheet | financial statement that reports assets, liabilities, and owner’s equity on a specific date |
