A planned process designed to compile financial data and summarize the results in accounting records and reports.

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

A formal report that shows what an individual owns, what an individual owes, and the difference between the two.

Anything of value that is owned.

An amount owed.

The difference between personal assets and personal liabilities.

The difference between assets and liabilities.

The principles of right and wrong that guide an individual in making decisions.

The use of ethics in making business decisions.

A business that performs an activity for a fee.

A business owned by one person.

A formal written document that describes the nature of a business and how it will operate.

Generally Accepted Accounting Principles. The standards and rules that accountants follow while recording and reporting financial activities.

Financial rights to the assets of a business.

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

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

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

A record that summarizes all the transactions pertaining to a single item in the accounting equation.

The name given to an account.

The difference between the increases and decreases in an account.

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

A person or persons to whom a liability is owed.

An increase in equity resulting from the sale of goods or services.

A sale for which payment will be received at a later date.

The cost of goods or services used to operate a business.

Assets taken from the business for the owner's personal use.