Accounting: Chapter 1 and 2 Review

A business activity that changes assets, liabilities, or owner's equity

• accounting equation
• transaction
• equities
• asset

An equation that shows the relationship among assets, liabilities, and owner's equity.

• Accounting equation
• account balance
• accounting system
• account records

The amount in an account

• account balance
• withdrawals
• transaction
• expense

The amount remaining after the value of all liabilities is subtracted from the value of all assets.

• owner's equity
• liability
• account balance
• expense

A business owned by one person

• sole proprietorship
• corporation
• partnership
• s-corporation

Anything of value that is OWNED

• asset
• liability
• revenue
• equities

A sale for which cash will be received at a later date

• sale on account
• accounts payable
• liability
• withdrawals

Assets taken out of a business for the owner's personal use

• withdrawals
• revenue
• expenses
• assets

An increase in owner's equity resulting from the operation of a business

• revenue
• expenses
• withdrawals
• accounting system 

A business that performs an activity for a fee

• service business
• manufacturing business
• goods producing industry
• farming