Accounting Vocabulary

Question	Answer
Account balance	amount in an account
Account title	name given to an account
Account	record summarizing all the info pertaining to a single item in the accounting equation
Accounting equation	shows relationship among assets, liabilities, and owner’s equity
Accounting records	summaries of a business’s financial activities
Accounting system	planned process for providing financial information that will be useful to management
Accounting	planning recording, analyzing, and interpreting financial information
Asset	anything of value that is owned or controlled
Business ethics	use of ethics in making business decisions
Capital	account used to summarize the owner’s equity
Equities	financial rights to the assets of a business
Ethics	principles of right and wrong
Expense	decrease in owner’s equity resulting from the operation of a business
Financial statements	reports that summarize the financial condition and operations of a business
Liability	amount of money owed to the creditors of a business
Owner’s equity	amount remaining after the value of all liabilities is subtracted from the value of all assets
Proprietorship	business owned by one person
Revenue	increase in owner’s equity resulting from the operation of a business
Transaction	business activity that changes assets, liabilities, or owner’s equity
Withdrawals	assets taken out of a business for the owner’s personal use

Resource summary

	Created by Shannon Anderson-Rush about 10 years ago