ASSETS
Assets taken from the business for the owner's personal use.
What are Withdrawals?
Anything of value that is owned.
What is an asset?
The difference between assets and liabilities.
What is Equity?
The principles of right and wrong that guide an individual in making decisions.
What are Ethics?
A business that performs an activity for a fee.
What is a Service Business?
A business owned by one person.
What is a Proprietorship?
The standards and rules that accountants follow while recording and reporting financial activities.
What are GAAP?
Financial rights to the assets of a business.
What is Equity?
The amount remaining after the value of all liabilities is subtracted from the value of all assets.
What is Owner's Equity?
The equation showing the relationship among assets, liabilities, and owner's equity.
What is the Accounting Equation?
Any business activity that changes assets, liabilities or owner's equity.
What is a transaction?
A record that summarizes all the transactions pertaining to a single item in the accounting equation.
What is an Account?
The name given to an account.
What is the Account Name?
The difference between the increases and decreases in an account.
What is the Account Balance?
The account used to summarize the owner's equity in a business.
What is Capital?
A person or business to whom a liability is owed.
What is a Creditor?
An increase in equity resulting from the sale of goods or services.
What is Revenue?
A sale for which payment will be received at a later date.
What is a Sale on Account?
The cost of goods or services used to operate a business.
What are Expenses?
An amount owed.
What is a Liability?
The process of planning, recording, analyzing, and interpreting financial information.
What is Accounting?
A planned process designed to compile financial data and summarize the results in accounting records and reports.
What is the Accounting System?
Financial reports that summarize the financial condition and operations of the business.
What are financial statements?
A formal report that shows what an individual owns, what an individual owes, and the difference between the two.
What is the Net Worth Statement?
The use of ethics in making business decision.
What are Business Ethics?