Accounting Chapter 1 Starting a Proprietorship

Anything of value that is owned.

• Liability

• Equity

• Asset

• Expense

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

• Owner’s Equity

• Account Balance

• Capital Account

• Net Worth Statement

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

• Accounting

• Financial Statements

• Accounting System

• GAAP

The difference between personal assets and personal liabilities.

• Equity

• Personal Net Worth

• Capital Account

• Net Worth Statement

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

• Business Plan

• Financial Statements

• Transaction

• Revenue

The difference between assets and liabilities.

• Owner’s Equity

• Equity

• Withdrawals

• Account Balance

A business that performs an activity for a fee.

• Proprietorship

• Service Business

• Transaction

• Creditor

Financial rights to the assets of a business.

• Equities

• GAAP

• Ethics

• Liabilities

A business owned by one person.

• Proprietorship

• Capital Account

• Asset

• Business Ethics

A record summarizing all the information pertaining to a single item in the accounting equation.

• Revenue

• Account

• Financial Statement

• Transaction