Chapter 1 Accounting Vocab

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

• Accounting

• Accounting System

• Ethics

• Proprietorship

A planned process designed to compile financial data and summarize the results in accounting records and reports.

• Accounting

• Accounting System

• Ethics

• Proprietorship

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

• Business Plan

• Accounting System

• Financial Statements

• GAAP

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

• Personal Net Worth

• Business Plan

• Financial Statements

• Net Worth Statement

The difference between personal assets and personal liabilities.

• Personal Net Worth

• Owner's Equity

• Accounting Equation

• Net Worth Statement

Anything of value that is owned.

• Creditor

• Asset

• Liability

• Equity

An amount owed.

• Creditor

• Asset

• Liability

• Equity

The difference between assets and liabilities.

• Creditor

• Asset

• Liability

• Equity

The principles of right and wrong that guide an individual in making decisions.

• Ethics

• Business Ethics

• GAAP

• Business Plan

The use of ethics in making business decisions.

• Ethics

• Business Ethics

• GAAP

• Business Plan