Chapter 1 Vocab
Planning, analyzing and interpreting financial information.
A planned process for providing financial information that will be useful to management.
Organized summaries of a business's financial activities.
Financial reports that summarize the financial condition and operations of a business.
A business that performs an activity for a fee.
A business owned by one person.
Anything of value that is owned.
Financial rights to the assets of a business.
An amount owed by a business.
The amount remaining after the value of all Liabilities is subtracted from the value of all assets.
Assets = Liabilities + Owner's Equity
The principles of right and wrong that guide an individual in making decisions.
The use of ethics in making business decisions.
A business activity that changes assets, liabilities or owner's equity
A record summarizing all the information pertaining to a single item in the accounting equation.
The name given to an account.
The up to date amount in an account.
The account used to summarize owner's equity.
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. Also known as a charge sale.
A decrease in owner's equity resulting from the operations of a business.
Assets taken out of the business for the owner's personal use. It is a decrease to owner's equity.