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Vocab
Classification
New Vocab
100
Planning, recording, analyzing, and interpreting financial information
What is accounting?
100
This is anything of value that is owned.
What is an asset?
100
This is an increase in owner's equity resulting form the operation of a business.
What is revenue?
200
A planned process for providing financial information that will be useful to management.
What is an accounting system?
200
These are financial rights to the assets of a business.
What is equities?
200
This is a sale for which cash will be received at a later date.
What is a sale on account?
300
These are organized summaries of a business's financial activities.
What is accounting records?
300
This is an amount owed by a business.
What is a liability?
300
This is a decrease in owner's equity resulting from the operation of a business.
What is an expense?
400
This is a business that performs an activity for a fee.
What is a service business?
400
This is the amount remaining after the value of all liabilities is subtracted from the value of all assets.
What is owner's equity?
400
These are assets that are taken out of a business for the owner's personal use.
What are withdrawals?
500
This is the accounting equation. Don't just tell me ALOE!
What is Assets = Liabilities + Owner's Equity?
500
These are all the asset accounts we have discussed so far in class.
What is cash, supplies, prepaid insurance, and accounts receivable?
500
Surprise Question! What would happen if you sold services on account?
What is Assets would increase and owner's equity would increase?