Accounting 1: 3.01 Vocab

A list of accounts used by a business

• T-accounts

• Expenses

• Assets

• Chart of accounts

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

• Accounting

• Accounting Equation

• Chart of accounts

• Analyzing transactions

An amount owed by a business

• Owner's equity

• Asset

• Liability

• Expense

Anything of value that is owned

• Owner's equity

• Asset

• Liability

• Revenue

The side of the account that is increased

• Debit

• Credit

• Normal balance

• Account

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

• Owner's equity

• Asset

• Liability

• Profit

An amount recorded on the right side of a T-account

• Debit

• Credit

An accounting device used to analyze transactions

• T-account

• Journal

• Account balance

• Accounting

An amount recorded on the left side of a T-account

• Debit

• Credit

Shows the relationship among assets, liabilities, and owner’s equity. It is most often stated as:

Assets = Liabilities + Owner’s Equity

• Transaction

• Capital

• Accounting equation

• Accounting