Accounting Chp 1
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Created by:
Wouden on May 23, 2012
Classes:
Accounting 1 Wouden, Wouden Account I
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19 terms
Terms | Definitions |
|---|---|
 Accounting | Planning, recording, analyzing, and interpreting financial information. |
| Accounting System | Planned process for providing financial information that will be useful to management. |
| Accounting Records | organized summaries of a business's financial activities |
| Financial Satements | reports that summerize the financial conditions and opperations of business |
| Service Business | a business that performs an activity for a fee |
| Propietorship | A business owned by one person |
| Asset | a useful or valuable quality |
| Equities | financial rights to the assets of a business |
| Liability | An amount owned by a business/ Person |
| Owner's Equity | the amount remaining after the value of all liabilities is subtracted from the value of all assets |
| Accounting Equation | Assets = Liabilities + Owner's Equity |
| Transaction | a business activity that changes assets, liabilities, or owner's equity |
| Account | Record summarizing all the information pertaining to a single item in the accounting equation |
| Account Balance | the amount in an account |
| capital | Account used to summarize the owner's Equity in a business. |
| Revenue | an increase in owner's equity resulting from the operation of a business |
| Sale on Account | a sale for which cash will be received at a later date |
| Expense | a decrease in owner's equity resulting from the operation of a business |
| Withdrawals | assets taken out of a business for the owner's personal use |
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