Accounting 1 Chapter 1 Cengage

Difference between increases and decreases.

• equity

• owner's equity

• account

• account balance

Anything of value owned.

• liability

• asset

• equity

• expense

Assets = liabilities + owner's equity

• accounting formula

• accounting statement

• accounting equation

• accounting system

Account used to summarize owner's equity.

• capital account

• revenue

• expense

• equity

Difference between assets and liabilities.

• account

• equity

• transaction

• sales on account

Planning, recording, analyzing, and interpreting financial information.

• accounting system

• transaction

• net worth statement

• accounting

Assets taken for personal use.

• liabilities

• withdrawals

• revenue

• expenses

Increase in equity from sale.

• revenue

• expenses

• account

• owner's equity

Amount remaining after liabilities subtracted from assets.

• equity

• owner's equity

• account balance

• financial statements

Process designed to compile financial data and summarize results.

• accounting system

• accounting

• personal finance

• financial statements