Accounting Terms
Anything of value that is owned.
What is an asset?
The use of ethics in making business decisions.
What are business ethics?
An increase in owner's equity resulting from the operation of a business.
What is revenue?
An amount owed by a business.
What is a liability?
A sale for which cash will be received at a later date.
What is a sale on account?
The amount remaining after the value of all liabilities is subtracted from the value of all assets.
What is owner's equity?
A business that performs an activity for a fee.
What is a service business?
Planning, recording, analyzing and interpreting financial information.
What is accounting?
A decrease in owner's equity resulting from the the operation of a business.
What is an expense?
The amount in an accout.
What is the account balance?
What is the accounting system?
Financial rights to the assets of a business.
What are equities?
An equation showing the relationship among assets, liabilities, and owner's equity.
What is the accounting equation?
The name given to an account.
What is an account title?
Organized summaries of a business's financial activities.
What is the accounting records?
A business owned by one person.
What is a proprietorship?
The principles of right and wrong that guide an individual in making decisions.
What are ethics?
A business activity that changes assets, liabilities, or owner's equity.
What is a transaction?
Financial reports that summarize the financial conditions and operations of a business.
What are the financial statements?
A record summarizing all the information pertaining to a single item in the accounting equation.
What is an account?
What is capital?
Assets taken out of a business for the owner's personal use.
What is a withdrawal?