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Accounting Chapter 1

STUDY
PLAY
Account
A record summarizing all the information pertaining to a single item in the accounting equation
Asset
Anything of value that is owned
Account Balance
The amount in an account
Account Title
The name given to an account
Accounting Equation
An equation showing the relationship among assets, liabilities, and owner's equity
Accounting Records
Organized summaries of a business's financial activities
Accounting System
A planned process for providing financial information that will be useful to management
Balance Sheet
A financial statement that reports assets, liabilities, and owner's equity on a specific date
Capital
The account used to summarize the owner's equity in the business
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
Proprietorship
A business owned by one person
Service Business
A business that performs an activity for a fee
Transaction
A business activity that changes assets, liabilities, or owner's equity