Chapter 1 Accounting Terms

The name given to an account.

• Accounting system

• Account balance

• Account title

• captial account

Principles of right and wrong that guide our decision making

• transaction

• ethics

• asset

• accounting

A decrease in owner's equity resulting from the operation of a business

• revenue

• expense

• transaction

• debt

Formal report that shows what a person owns, owes, and the difference between the two.

• net worth statement

• equity

• accounting balance

• financial statement

Anything of value that is owned

• equity

• liability

• account

• asset

Planning, recording, analyzing, and interpreting financial information

• business plan

• ethics

• accounting

• account balance

The account used to summarize the owner's equity in the business

• capital account

• account

• business plan

• service business

A sale for which cash will be received at a later date

• expense

• revenue

• sale on account

• accounting system

Assets taken out of a business for the owner's personal use

• capital

• equity

• expenses

• withdrawls

assets = liabilities + owner's equity

• accounting balance

• accounting equation

• accounting title

• accounting plan