Basic Accounting Terms 1

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

• capital
• withdrawals
• equities
• revenue

A decrease in owner's equity resulting from the operation of a business

• account
• capital
• asset
• expense

Amount owed by a business

• liability
• asset
• capital
• account

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

• transaction
• expense
• revenue
• sale on account

Anything of value that is owned

• account
• asset
• withdrawal
• expense

A business owned by one person

• service business
• revenue
• expense
• proprietorship

The amount in an account

• account title
• revenue
• account balance
• accounting records

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

• account
• expense
• capital
• revenue

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

• asset
• expense
• withdrawl
• revenue

Revenues minus expenses equals _____________________.
(Revenues-Expenses = _______________)

• Profit
• Overhead
• Income
• None of the above