Accounting Terms Chapter 1

Amount owed by a business

• liability

• asset

• capital

• account

Financial rights to the assets of a business are called

• ethics

• withdrawals

• accounting records

• equities

The use of moral values in making business decisions

• business accounting

• business equities

• business ethics

• business capital

The account used to summarize the owner's equity in a business

• asset

• expense

• capital

• revenue

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

• transaction

• expense

• revenue

• sale on account

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

• business equation

• quantitative equation

• annuity equation

• accounting equation

A business owned by one person

• service business

• revenue

• expense

• proprietorship

The name given to an account

• account title

• capital

• expense

• revenue

The amount remaining after the liability value is subtracted from the asset value

• expense

• revenue

• owner's equity

• withdrawals

Oganized summaries of a business' financial activities

• accounting records

• accounting system

• accounting equation

• accounting ethics