Accounting Chapter 1 Vocab

Anything of value that is owned:

• Asset

• Capital

• Liability

• Revenue

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

• Owner's Equity

• Withdrawals

• Account Balance

• Expense

Process for providing financial information that is useful to management.

• Accounting System

• Financial Statements

• Transaction

• Business Ethics

Organized summaries of a business's financial activities.

• Accounting Records

• Financial Statements

• Accounting

• Accounting System

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

• Financial statements

• Proprietorship

• Accounting records

• Capital

The use of ethics in making business decisions.

• Business ethics

• Ethics

• Liability

• Equities

A business that performs an activity for a fee

• Service business

• Proprietorship

• Accounting

• Business ethics

The financial rights to the assets of a business.

• Equities

• Capital

• Asset

• Liability

A business owned by one person

• Proprietorship

• Owner's Equity

• Asset

• Account

A record summarizing all the information pertaining to a single item in the accounting equation.

• Account

• Asset

• Liability

• Owner's Equity