Accounting 1 Chapter 1 Review

A record that summarizes all the transactions pertaining to a single item in the accounting equation.

• account

• accounting

• equity

• ethics

Assets taken from the business for the owner’s personal use.

• account balance

• creditor

• withdrawal

• expense

Any business activity that changes assets, liabilities, or owner’s equity.

• asset

• transaction

• liability

• account

The difference between the increases and decreases in an account.

• account balance

• account title

• equities

• expense

The name given to an account.

• ethics

• financial statements

• asset

• account title

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

• account

• accounting

• asset

• accounting equation

An equation showing the relationship among assets, liabilities, and owner’s equity.

• accounting

• accounting equation

• accounting system

• account

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

• accounting system

• ethics

• accounting

• equity

Anything of value that is owned.

• business plan

• liability

• asset

• equity

The use of ethics in making business decisions.

• business plan

• business ethics

• ethics

• liability