Accounting Chapter 1

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

• owner's equity
• personal net worth
• net worth statement
• financial statements

Planning, recording, analyzing, and interpreting financial information.

• Accountants
• Accounting
• Account Equation
• Accounting System

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

• Accounting System

• Accounting Equation

• Accounting Balance

• Accounting

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

• transaction
• capital
• business ethics
• business plan

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

• Accounting equation
• Accounting Title
• Accounting System
• Accounting Balance

The standards and rules that accountants follow while recording and reporting financial activities.

• GASP
• GAAP
• GAPA
• GAGA

The account used to summarize the owner’s equity in the business.

• Liability Account
• Summary Account
• Asset Account
• Capital Account

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

• asset
• liability
• owner's equity
• nothing

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

• accounting
• account title
• account balance
• account

The difference between personal assets and personal liabilities.

• Personal property
• Personal Assets
• Personal Net Worth
• Personal Department