Vocab 1
Vocab 2
Vocab 3
Vocab 4
Vocab 5
100
The process of planning, recording, analyzing, and interpreting financial informaton
What is accounting?
100
A record that summarizes all the transactions pertaining to a single item in the accounting equation.
What is an account?
100
An account used to summarize the owner's equity in a business.
What is the capital account?
100
The cost of goods or services used to operate a business.
What is an expense?
100
The principle of right and wrong that guide a business person in making decisions.
What are ethics?
200
is a planned process designed to compile financial data and summarize the results in accounting records and reports.
What is An accounting system?
200
The difference between the increases and decreases in an account.
What is account balance?
200
A person or business to whom a liability is owed.
What is a creditor?
200
An increase in equity resulting from the sale of goods and services.
What is revenue?
200
When one person owns a business.
What is a proprietorship?
300
Financial reports that summarize the financial condition and operations of a business
What are financial reports?
300
The name given to an account.
What is an account title?
300
The financial rights to the assets of a business.
What are equities?
300
A sale for which payment will be received at a later date.
What is a sale on account or account receivable?
300
Any business activity that changes assets, liabilities, or owner's equity.
What is a transaction?
400
Allows the person extending the loan to see the financial position of a borrower on a specific date.
What is a net worth statement?
400
An equation showing the relationship among assets, liabilities, and owner's equity. assets=liabilities + owner's equity
What is the accounting equation?
400
Generally Accepted Accounting Principles. The standards and rules that accountants follow while recording and reporting financial activities.
What is GAAP?
400
Assets taken from the business for the owner's personal use.
What are withdrawals?
400
A business which performs an activity for a fee.
What is a service business?
500
Anything of value that is owned.
What is an asset?
500
A formal written document that describes the nature of a business and how it will operate.
What is a business plan?
500
The amount remaining after the value of all liabilities is subtracted from the value of all assets.
What is owner's equity?
500
GAAP is the abbreviation for this.
What are Generally Accepted Accounting Principles?
500
The language of business and the name of this course.
What is accounting?
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