Name: Nick Marfurt-Levy

What is the Accounting Equation?

Accounts = liabilities + owners’ equity

The name given to an account - account title

The amount remaining after the value of all liabilities is subtracted from the value of all assets -
owners equity
Assets taken out of a business for the owner’s personal use - withdraws

A business that performs an activity for a fee – service business

The account used to summarize the owner’s equity in a business – capital

A list of accounts used by a business – account records

A business form giving written acknowledgement for cash received - receipt

Anything of value that is owned – Asset

An account recorded on the left side – debit

The amount in an account – account balance

A decrease in owner’s equity resulting from the operation of a business – expense

Financial reports that summarize the financial condition and operations of a business - chart of accounts

A business activity that changes assets, liabilities, or owner’s equity – transaction

A business paper from which information is obtained for a journal entry – source document

A sale for which cash will be received at a later date – Sales on account

A form on which a brief message is written describing a transaction - memorandum

A business form ordering a bank to pay cash from a bank - check

A business owned by one person - proprietorship

An increase in owner’s equity resulting from the operation of a business - Revenue

A record summarizing all the information pertaining to a single item in the accounting equation - account

Organized summaries of a business’s financial activities – financial statement

A form for recording transactions in chronological order – journal

A form describing the goods or services sold, the quantity, and the price – invoice

An amount recorded on the right side - credit

An amount owed by a business - liability

capital
transaction
check
liability
invoice
proprietorship
service business
account balance
sale on account
withdrawals
source document
owner’s equity
chart of accounts
journal
debit
account
expense
accounting records
financial statements
asset
memorandum
credit