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 Accounting | Planning, recording, analyzing, and interpreting financial information. |
| Accounting system | A planned process for providing financial information that will be useful to management. |
| Accounting records | Organized summaries of a business's financial activities. |
| Service business | A business that performs an activity for a fee. |
| Proprietorship | A business owned by one person. |
| Asset | Anything of value that is owned. |
| Equities | Financial rights to the assets of a business. |
| Liability | An amount owed by a business. |
| Owner's equity | The amount remaining after the value of all liabilities is subtracted from the value of all assets. |
| The accounting equation | An equation showing the relationship among assets, liabilities, and owner's equity. |
| Transaction | A business activity that changes assets, liabilities, owner's equity. |
| Account | A record summarizing all the information pertaining to a single item in the accounting equation. |
| Account title | The name given to an account. |
| Account balance | The amount in an account. |
| Capital | The account used to summarize the owner's equity in a business. |
| Balance sheet | A financial statement that reports assets, liabilities, and owner's equity on a specific date. |