Assets
Liabilities
Owner's Equity
Equation
Service Business
100
A business that performs an activity for a fee.
What is a service business?
100
A business owned by one person.
What is a proprietorship?
100
Anything of value to a company.
What is an asset?
100
Financial rights to the assets of a business.
What are equities?
100
An amount owed by the business.
What is a liabiity?
200
The amount remaining after the value of liabilities is subtracted from the value of all assets.
What is owner's equity?
200
An equation showing the equality of assets, liabilities and owner's equity.
What is the accounting equation?
200
Any business activity that changes the assets, liabilities or owner's equity.
What is a transaction?
200
A record summarizing the information of one single item in the accounting equation.
What is an account?
200
The name given to an account.
What is an account title?
300
The amount in an account.
What is an account balance?
300
Account used to summarize the owner's equity in a business.
What is capital?
300
An increase in equity resulting from the operations of a business.
What is revenue?
300
Sale for which cash will be received at a later date.
What is sale on account?
300
A decrease resulting from the operation of a business.
What are expenses?
400
Money taken from the company for personal use.
What is a withdrawl?
400
Assets = Liabilities + __________.
What Owner's Equity
400
Principals of right and wrong that guide an individual.
What are ethics?
400
Business transactions that are stated in numbers that have a common value or common unit of measure.
What is the Unit of Measurement concept?
400
Assets - Owner's Equity =
What is Liabilities?
500
Planning, recording, analyzing, and interpreting financial information.
What is accounting?
500
Planned process for providing financial information useful to management.
What is an accounting system?
500
Organized summaries of a business's financial activities.
What are accounting records?
500
Reports that summarize the financial condition and operations of a business.
What are financial statements?
500
When a business's financial information is recorded and reported separately from the owner's personal finances.
What is the Business Entity Concept?
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