Assets
An account used to summarize the owner's equity in a business.
What is the Capital account
An increase in equity resulting from the sale of goods or service.
What is Revenue?
A sales for which payment will be made at a later date.
What is a Sale on Account?
The cost of good or services used to operate a business.
What are Expenses?
Assets taken from the business for the owner's personal use.
What are Withdrawals?
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.
The name given to an account.
What is the Account Title.
The use of ethics in making business decisions.
What are Business 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?
General Accepted Accounting Principles. 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 are Equities?
Anything of value that is owned.
What is an Asset?
An amount owed.
What is a Liability?
The difference between personal assets and personal liabilities.
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?
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 Accounting System?
Financial reports that summarize the financial condition and operations of a business.
What are Financial Statement?
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?
A formal written document that describes the nature of a business and how it will operate.
What is a Business Plan?