Accounting Terms Chapter 1

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

• Owner's Equity

• Accounting Equation

• Withdrawals

• Sale on Account

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

• Proprietorship

• Accounting Equation

• Accounting System

• Ethics

The difference between personal assets and personal liabilities.

• Account

• Personal Net Worth

• Capital Account

• GAAP

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

• GAAP

• Accounting Equation

• Account

• Financial Statements

The difference between assets and liabilities

• Equity

• Creditor

• Transaction

• Withdrawal

A business that performs an activity for a fee.

• Customer Service

• Product Business

• Proprietorship

• Service Business

A business owned by one person.

• Service Business

• Owner's Equity

• Proprietorship

• Creditor

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

• Equity

• Account

• Accounting Equation

• Asset

Planning, recording, analyzing, and interpreting financial information.

• Accounting

• Proprietorship

• Business Ethics

• GAAP

An equation showing the relationship among assets, liabilities, and owner's equity.

• Accounting Equation

• Transaction

• Sale on Account

• Owner's Equity