vocabulary 1
an amount owed
a business that performs an activity for a fee
the amount remaining after the value of all liabilities is subtracted from the value of all assets
the difference between the increases and decreases in an account
the difference between personal assets and personal liabilities
a business owned by one person
an equation showing the relationship among assets, liabilities, and owner’s equity
an account used to summarize the owner’s equity in a business
the difference between assets and liabilities
a formal written document that describes the nature of a business and how it will operate
any business activity that changes assets, liabilities, or owner’s equity
a person or business to whom a liability is owed
a formal report that shows what an individual owns, what an individual owes, and the difference between the two.
the principles of right and wrong that guide an individual in making decisions
generally accepted accounting principles. The standards and rules that accountants follow while recording and reporting financial activities
a record that summarizes all the transactions pertaining to a single item in the accounting equation
an increase in equity resulting from the sale of goods or services
anything of value that is owned
the use of ethics in making business decisions
financial rights to the assets of a business.
the name given to an account
a sale for which payment will be received at a later date