| 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 |
| Organized summaries of a business's financial activities. | accounting records |
| A business that performs an activity for a fee. | service business |
| A business owned by one person. | proprietorship |
| Anything of value that is owned. | asset |
| Financial rights to the assets of a business. | equities |
| An amount owed by a business. | liability |
| The amount remaining after the value of all liabilities is subtracted from the value of all assets. | owner's equity |
| An equation showing the relationship among assets, liabilities, and owner's equity. | accounting equation |
| A business activity that changes assets, liabilities, or owner's equity. | transaction |
| A record summarizing all the information pertaining to a single item in the accounting equation. | account |
| The name given to an account. | account title |
| The amount in an account. | account balance |
| The account used to summarize the owner's equity in a business. | capital |
| A financial statement that reports assets, liabilities, and owner's equity on a specific date. | balance sheet |
