CHAPTER 1 (VOCAB) - ACCOUNTING

Planning, recording, analyzing, and interpreting financial information.

• accounting

• accounting system

• accounting records

• financial statements

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

• accounting

• accounting system

• accounting records

• financial statements

Organized summaries of a business’s financial activities.

• accounting

• accounting system

• accounting records

• financial statements

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

• accounting

• accounting system

• accounting records

• financial statements

A business that performs an activity for a fee.

• service business

• proprietorship

• asset

• equities

A business owned by one person.

• service business

• proprietorship

• asset

• equities

Anything of value that is owned.

• service business

• proprietorship

• asset

• equities

Financial rights to the assets of a business.

• service business

• proprietorship

• asset

• equities

An amount owed by a business.

• liability

• owners equity

• accounting equation

• ethics

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

• liability

• owners equity

• accounting equation

• ethics