Accounting Chapter 1 Review

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

• Account

• Capital

• Net worth statement

• Proprietorship

A business that performs an activity for a fee

• Accounting System

• Equity

• Service Business

• Proprietorship

A business owned by one person

• Account

• Capital

• Service Business

• Proprietorship

An amount owed by a business

• Assets

• Equities

• Liabilities

• Net worth

A planned process for providing financial information that will be useful to management

• Accounting System

• Proprietorship

• Service Business

• Transaction

The standards and rules that accountants follow whilerecording and reporting financial activities.

• BAR

• CDOS

• GAAP

• OSHA

The account used to summarize the owner’s equity in the business.

• Capital

• Revenue

• Expense

• Withdrawal

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

• Assets

• Cash

• Liabilities

• Owner's Equity

Planning, recording, analyzing, and interpreting financial information.

• Accounting

• Equity

• Liability

• Transaction

A decrease in owner’s equity resulting from the operation of a business.

• Assets

• Expenses

• Liability

• Revenue