Accounting Concepts Worksheet

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

• Owner's equity

• Net Worth Statement

• Personal Net Worth

• Equity Statement

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

• Accounting Equation

• Net Worth Statement

• Owner's Equity

• Accounting Principles

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

• Accounting

• Accounting Equation

• Transaction

• Service Business

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

• Accounting Equation

• Business Ethics

• Personal Net Worth

• GAAP

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

• Sale on account

• Owner's Equity

• Revenue

• Expense

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

• Withdrawals

• Expenses

• Revenue

• Owner's Equity

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

• Transaction

• Accounting

• Account

• Title

The difference between personal assets and personal liabilities

• Owner's equity

• Accounting

• Equation

• Personal Net Worth

Anything of value that is owned.

• Asset

• Liability

• Owner's Equity

• Account Title

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

• Business plan

• Invoice

• Resume

• Memo