| A | B |
|---|
| expense | A decrease in owner's equity resulting from the operation of a business |
| Realization of Revenue | The accounting concept _________ is applied when revenue is recorded at the time goods orservices are sold. |
| accounting equation | An equation showing th relationship among assets, liabilities and owner's equity |
| transaction | A business activity that changes assets, liabilities or owner's equity |
| accounting system | A planned process for providing financial information that will be useful to mangement |
| account balance | The amount in an account |
| capital | The account used to summarize the owner's equity in the business |
| owner's equity | The amount remaining after the value of all liabilities is subtracted from the value of all assets |
| account | A record summarizing all the information pertaining to a single item in the accounting equation |
| accounting records | Organized summaries of a business's financial activities |
| assets | Anthing of value that is owned |
| sale on account | A sale for which cash will be received at a later date |
| withdrawals | Assets taken out of a business for the owner's personal use |
| revenue | An increase in owner's equity resulting from the operation of a business |
| proprietorship | A business owned by one person |
| equities | Financial rights to the assets of a business |
| service business | A business that performs an activity for a fee |
| ethics | The principles of right and wrong that guide an individual in making decisions |
| financial statements | Financial reports that summarize the financial conditions and operations of a business |
| liability | An amount owed by a business |
| account title | The name given to an account |
| accounting | Planning, recording, analyzing, and interpreting financial information |
| decreases | A withdrawal ______owner's equity. |
| decreased | When cash is paid on account, a liability is _____. |
| increased | When cash is received from a sale, the total amount of both assets and owner's equity is ____. |
| decreases | A withdrawal _____owner's equity. |
| business entity | Keeping personal and business records separate is an application of the _____ concept. |
| business ethics | The use of ethics in making business decisions |
