| A | B |
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| Account | A record that summarizes all the transactions pertaining to a single item in the accounting equation. |
| Account Balance | The difference between the increases and decreases in an account. |
| Accounting | The process of planning, recording, analyzing, and interpreting financial information. |
| Accounting Equation | The equation showing the relationship among assets, liabilities, and owner's equity. |
| Accounting System | A planned process designed to compile financial data and summarize the results in accounting records and reports. |
| Account Title | The name given to an account. |
| 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 and how it will operate. |
| Capital Account | An account used to summarize the owner's equity in a 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. |
| Ethics | The principles of right and wrong that guide an individual in making decisions. |
| Expense | The cost of goods or services used to operate a business. |
| Financial Statements | Financial reports that summarize the financial condition and operations of a business. |
| GAAP | Generally Accept Accounting Principles. The standards and rules that accountants follow while recording and reporting financial activities. |
| Liability | An amount owed. |
| Net Worth Statement | A formal report that shows what an individual owns, what an individual owes, and |
| 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 owned by one person. |
| Revenue | An increase in equity resulting from the sale of goods or services. |
| Sale on Account | A sale for which payment will be received at a later date. |
| Service Business | A business that performs an activity for a fee. |
| Transaction | Any business activity that changes assets, liabilities, & owner's equity. |
| Withdrawals | Assets taken from the business for the owner's personal use. |
