Accounting: Planning, recording, Transaction: A business activity
analyzing, and interpreting that changes assets, liabilities, or
financial information owner’s equity
Accounting System: A planned Account: A record summarizing
process for providing financial all the information pertaining to a information that will be useful to single item in the accounting management equation
Accounting Records: Organized Account Title: The name given to
summaries of a business’s an account financial activities Account Balance: The amount in Service Business: A business that an account performs an activity for a fee Capital: The account used to Proprietorship: A business owned summarize the owner’s equity in a by one person business
Asset: Anything of value that is Balance Sheet: A financial
owned statement that reports assets, liabilities, and owner’s equity on a Equities: Financial rights to the specific dare assets of a business Business Entity Concept: A Liability: An amount owed by a business’s financial information is business recorded and reported separately from the owner’s personal Owner’s Equity: The amount financial information remaining after the value of all liabilities is subtracted from the Unit of Measure Concept: When value of all assets financial statements are stated in numbers that have common values Accounting Equation: An equation showing the relationship among Going Concern Concept: When assets, liabilities, and owner’s financial statements are prepared equity with the expectation that a business will remain in operation indefinitely Generally Accepted Accounting Principles (GAAP): The standards and rules that accountants follow while recording and reporting financial activities