1.1
Total Assets - Total Liabilities = ???
What is Owner's Equity?
Formal written document that describes the nature of a business & operation.
What is a Business Plan?
The cost of goods or services used to operate a business.
What is an expense?
Use of ethics in businesses in making business decisions.
What are Business Ethics?
T/F: A business plan does not need to be detailed
What is FALSE?
Process of planning, recording, analyzing, and interpreting financial info
What is Accounting?
A person or buisness to whom a liability is owed
What is a creditor?
An increase in equity resulting from the sale of goods or services.
What is revenue?
A business that performs an activity for a fee
What is a Service Business?
Difference between Business Ethics and Ethics
What is ethics aids in making the right decisions in daily life, while business ethics guides professional decisions?
Principles of right or wrong that guide an individual in making decisions
What are Ethics?
the cost of borrowing money or the reward for saving/investing it, typically calculated as a percentage (rate) of the principal amount
What is interest?
A sale for which payment will be received at a later date.
What is a sale on account?
Any business activity that changes assets, liabilities, or owner’s equity
What is a Transaction?
The difference between personal assets and personal liabilities
What is Personal Net Worth?
Just like how English or Spanish are languages, Accounting is the ???
What is Language of Business?
A business owned by one person.
What is a proprietorship?
Owner's equity is increased.
What GAAP stands for
What are Generally Accepted Accounting Principles?
Accounts that are credited and debited when April's Pastry World pays $500 on account
What is Debit Cash and Credit Accounts Receivable - April's Pastry World?
Reports that summarize the financial condition and operations of a business
What are Financial Statements?
The standards and rules that accountants follow while recording and reporting financial activities.
What is GAAP?
Assets taken from the business for the owner’s personal use.
What is a withdrawal?
Account used to summarize the owner’s equity
What is a Capital Account?
Interest paid on an original amount deposited in a bank plus any interest that has been paid