| A | B |
|---|
| Planning, recording, analyzing and interpreting financial information | Accounting |
| A planned process for providing financial information that will be useful to management. | Accounting System |
| The principles of right and wrong that guide an individuals in making decisions. | Ethics |
| A person who summarizes, alanyzes, and interprets accounting information | Accountant |
| Bookkeeper | A person who does general accounting work plus some summaryizing and analyzing |
| Accounting Clerk | A person who records, sorts, and files accounting information |
| proprietorship | A 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 | The amount remaining after the value of all liabilities is subtracted from the value of alll assets |
| Transaction | A business activity that changes assets, liabilities , or owner's equity |
| Account | A record summarizing all the information pertaining to a single item in the accounting equation |
| Capital | The account used to summarize the owner's equity in the business |
| Balance sheet | A financial statement that reports assets, liabilities, and owner's equity on a specific date |
| Revenue | An increase in owner's equity resulting from the operation of a business |
| Expense | A decrease in owner's equity resulting from the operation of a business |
| Owner's Drawing | Assets taken out of the business for the owner's personal use |
| Debit | An entry recorded on the left side of a T account |
| Credit | An entry recorded on the right side of a T account |
| Contra Account | An account that reduces a related account on a financial statement |
| Journal | A form for recording transactions in chronological order |
| Entry | Information for each transaction recorded in a journal |
| Source Document | A business paper from which information is obtained for a journal entry |
| Proving Cash | Determining that the amount of cash agrees with the accounting records |
| Journalizing | Recording transactions in a journal |
