Chapter One

1
Chapter One
12 Words
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Accounting System
3
A planned process for providing financial
information that will be useful to management
4
Accounting Records
5
Organized summaries of a businesss financial
activities
6
Balance Sheet
7
A financial statement that reports assets,
liabilities, and owners equity on a specific date
8
Asset
9
Anything of value that is owned
10
Service Business
11
A business that performs an activity for a fee
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Proprietorship
13
A business owned by one person
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Accounting
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Planning, recording, analyzing, and interpreting
financial information
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Liability
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An amount owed by a business
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Owner's Equity
19
The amount remaining after the value of all
liabilities is subtracted from the value of all
assets
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Transaction
21
A business activity that changes assets,
liabilities, or owners equity
22
Capital
23
The account used to summarize the owners equity
in a business
24
Equities
25
Financial rights to the assets of a business