Acctg Ch 1 Vocab

The standards and rules that accountants follow while recording and reporting financial activities

• GAP
• GAAP
• CPA

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

• accounting standards
• accounting system
• financial statements
• personal net worth

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

• equity
• owner's equity
• personal net worth
• net worth statement

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

• accounting
• accounting system
• financial statements
• business plan

The process of planning, recording, analyzing, and interpreting financial information.

• accounting
• accounting system
• financial statements
• ethics

Anything of value that is owned.

• Liability
• Equity
• Asset
• Investment

The use of ethics in making business decisions.

• Clipper Pride
• Values
• Business Ethics
• GAAP

A business that performs an activity for a fee.

• Merchandising business
• Proprietorship
• Service Business
• Performance Based Business

A formal written document that describes the nature of a business and how it will operate.

• business application
• business venture
• financial statement
• business plan

The equation showing the relationship among assets, liabilities, and owner's equity.

• accounting equation
• account balance
• equities
• capital account