Accounting: Ch. 1-3 Vocabulary

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Accounting

Back

the process of planning, recording, analyzing, and interpreting financial information

Front

Accounting System

Back

a planned process designed to compile financial data and summarize the results in accounting records and reports

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Financial Statements

Back

financial reports that summarize the financial condition and operations of a business

Front

Net Worth Statement

Back

a formal report that shows what an individual owns, what an individual owes, and the difference between the two

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Asset

Back

anything of value that is owned

Front

Liability

Back

an amount owed

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Personal Net Worth

Back

the difference between personal assets and personal liabilities

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Equity

Back

the difference between assets and liabilities

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Ethics

Back

the principles of right and wrong that guide an individual in making decisions

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Business Ethics

Back

the use of ethics in making business decisions