Chapter 1 Accounting Terms

Front

Planning, recording, analyzing, and interpreting financial information.

Back

Accounting

Front

Financial Reports that summarize the financial condition and operation of a business.

Back

Financial Statements

Front

A business that performs an activity for a fee.

Back

Service Business

Front

Organized summaries of a business's financial activities.

Back

Accounting Records

Front

The accounting equation does not have to be in balance to be correct.

Back

False

Front

A business owned by one person.

Back

Proprietorship

Front

Anything of value that is owned.

Back

Asset

Front

An amount owed by a business.

Back

Liability

Front

When items are bought and paid for later this is referred to as buying on account.

Back

True

Front

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

Back

Owner's Equity