Chapter 1 Accounting

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

• Net worth statement
• Balance Sheet

• Financial Statement

• Income Statement

A business activity that changes assets, liabilities, or owner's equity

• Expense

• Revenue

• Transaction

• Account

The standards and rules that accountants follow while recording and reporting financial acts.

• ABCD

• GAAP

• APPA

• MLA

A business owned by one person.

• Proprietorship
• Partnership

• Corporation

• Shareholders

A business that performs an activity for a fee.

• Goods Business

• Wal-Mart

• Subscription Business

• Service Business

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

• Revenue
• Expense

• Cash

• Accounts Receivable

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

• Income Statements

• Financial Statements

• Annual Report

• Bank Statement

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

• Distance Equation

• Owner's Equity

• Accounting Equation

• Quadratic Formula

An amount owed by a business

• Liability
• Asset

• Cash

• Equity

Anything of value that is owned.

• Liability

• Asset

• Cash

• Equity