Accounting Chapter 1

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

• net worth statement
• transaction
• liability
• financial statements

the cost of goods or services used to operate a business

• expense
• ethics
• asset
• revenue

an increase in equity resulting from the sale of goods or services

• expense
• creditor
• revenue
• asset

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

• account balance
• accounting equation
• accounting system
• accounting

an account used to summarize the owner's equity in a business

• capital account
• accounting
• account
• sale on account

the difference between assets and liabilities

• asset
• equity
• ethics
• equities

a person or business to whom a liability is owed

• equities
• creditor
• revenue
• equity

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

• equities
• net worth statement
• financial statements
• account title

the use of ethics in making business decisions

• ethics
• business ethics
• business plan
• owner's equity

anything of value that is owned

• asset
• account
• GAAP
• equity