Chapter 1 Accounting Terms

Planning, recording, analyzing, and interpreting financial information.

• Account

• Account Balance

• Accounting System

• Accounting

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

• Accounting Records

• Accounting System

• Accounting Equation

• Accounting

Financial Reports that summarize the financial condition and operation of a business.

• Financial Statements

• Accounting Records

• Accounting

• Accounting System

A business that performs an activity for a fee.

• Service Business

• Transaction

• Business Ethics

• Accounting

Organized summaries of a business's financial activities.

• Sale on Account

• Account Title

• Accounting Records

• Accounting System

Financial rights to the assets of a business.

• Equities

• Capital

• Owner's Equity

• Proprietorship

The accounting equation does not have to be in balance to be correct.

• True

• False

A business owned by one person.

• Capital

• Service Business

• Proprietorship

• Owner's Equity

Anything of value that is owned.

• Equities

• Liability

• Asset

• Capital

An amount owed by a business.

• Asset

• Owner's Equity

• Sale on account

• Liability