Accounting Chapter 1
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Created by:
BrandonEstridge on January 27, 2011
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Classes:
Buckeye Business Academy - East Holmes Satellite
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27 terms
Terms | Definitions |
|---|---|
 accounting | Planing, recording, analyzing, and interpreting financial info. |
| 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 |
| financial statements | Financial reports that summarize the financial condition and operations of a business |
| 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 |
| accounting equation | An equation showing the relationship among assets, liabilities, and owner's equity |
| ethics | the principles of right and wrong that guide an individual in making decisions |
| business ethics | The use of ethics in making business decisions |
| transaction | a business activity that changes assets, liabilities, or owner's equity |
| account | A record summarizing all the info 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 |
| 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 |
| T account | An accounting device used to analyze transactions |
| debit | An amount recorded on the left side of a T Account |
| credit | An amount recorded on the right side. |
| normal balance | The side of the account that is increased |
| chart of accounts | A list of accounts used by a business |
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