Vocabulary
The use of ethics in making business decisions.
Business Ethics
The amount in an account.
Account Balance
Anything of value that is owned.
Asset
A business owned by one person.
Proprietorship
An amount owed by a business.
Liability
Planning, recording, analyzing, and interpreting financial information.
Accounting
The account used to summarize the owner's equity in the business.
Capital
A sale for which cash will be received at a later date.
Sale on account
A business that performs an activity for a fee.
Service Business
The name given to an account.
Account Title
An equation showing the relationship among assets, liabilities, and owner's equity.
Accounting Equation
The amount remaining after the value of all liabilities is subtracted from the value of all assets.
Owner's Equity
Assets taken out of a business for the owner's personal use.
Withdrawals
The principles of right and wrong that guide an individual in making decisions.
Ethics
What 2 accounts are used? Bought supplies on account.
Supplies and Accounts Payable
A business activity that changes assets, liabilities, or owner's equity.
Transaction
A record summarizing all the information pertaining to a single item in the accounting equation.
Account
An increase in owner's equity resulting from the operation of a business.
Revenue
Financial reports that summarize the financial conditions and operations of a business.
Financial Statements
What 2 accounts are used? Sold services on account.
Sales and Accounts Receivable
A planned process for providing financial information that will be useful to management.
Accounting System
Organized summaries of a business's financial activities.
Accounting records
Financial rights to the assets of a business.
Equities
A decrease in owner's equity resulting from the operation of a business.
Expense
Describe the transaction based on the information. Cash decreased and Insurance increase. This is working backwards for example (Paid cash for supplies would be the type of answer I want).
Paid cash for insurance