Accounting Ch. 1 Vocab

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

• Balance Sheet

• Income Statement

• Net Worth Statement

• Journal

Planning, recording, analyzing and interpreting financial information:

• Accounting

• Sole Proprietorship

• Account Title

• Financial Statements

Financial rights to the assets of a business:

• Owner's Equity

• Equities

• Liabilities

• Withdrawal

The name given to an account:

• Account Balance

• Account Title

• Account

• Personal Net Worth

The amount in an account is the account balance.

• True

• False

An increase in owner's equity resulting from the operation of a business:

• Withdrawal

• Investment

• Revenue

• Expense

A person or business to whom a liability is owed:

• Asset

• Equity

• Creditor

• Capital

Am amount owed by a business:

• Asset

• Liability

• Owner's Equity

• Revenue

Financial Reports that summarize the financial conditions and operations of a business:

• Balance Sheet

• Income Statement

• General Ledger

• Financial Statements

The difference between assets and liabilities is:

• Equity

• Cash

• Supplies

• Accounts Receivable