Accounting Vocabulary

The process of keeping track of a business' finances

• Accounting

• Transaction

• Accounting Cycle

• Income Statement

The right side of the T-chart

• Liability

• Credit

• Debit

• Asset

The left side of the T-chart

• Liability

• Credit

• Debit

• Asset

Assets = Liabilities + Equity

• Double-entry Method

• Balance Sheet

• Accounting Cycle

• Accounting Equation

Must be balanced - meaning both sides of the equation must be equal

• Balance Sheet

• Income Statement

• Accounting Cycle

• Double-entry Method

The process of recording and processing the accounting events of a company

• Accounting

• Accounting Cycle

• Liability

• Equity

A financial statement that provides information about a company's present condition

• Balance Sheet

• Income Statement

• Accounting Equation

• LLC

A financial tool that provides information about a company's past performance

• Balance Sheet

• Income Statement

• Transaction

• LLC

A business that is owned by one person who typically runs and manages the business

• LLC

• Corporation

• Partnership

• Sole Proprietorship

Two or more people who share the ownership of a single business

• LLC

• Corporation

• Partnership

• Sole Proprietorship