Accounting Basic Terms

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

• Accounting

• Financial Statement

• Accounting System

• Business plan

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

• net worth statement

• Equity

• Balance Sheet

• Financial Report

An amount owed

• assets

• liability

• equity

• account

The difference between assets and liabilities.

• ethics

• GAAP

• debts

• equity

The use of ethics in making business decisions.

• service

• transactions

• business ethics

• expense

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

• Accounting

• Business plan

• Financing

• Crediting

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

• Income Statement

• Financial Statements

• Balance Sheet

• Trial Balancee

Anything of value that is owned.

• Liability

• Equity

• Asset

• Expense

The difference between personal assets and personal liabilities.

• Equities

• Personal Net Worth

• Assets

• Account title

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

• ethics

• GAAP

• business standards and procedures

• legal laws