Chapter 1

2. the process of recording financial information.
5. difference between personal assets and personal liabilities.
7. principles of right and wrong that guide someone in decision making.
9. difference between assets and liabilities.
10. the standards and rules that accountants follow while doing financial activities.
14. anything of value that is owned.
15. increase in equity from the sale of goods or services.
17. amount remaining after that value of liabilities is subtracted from the value of assets.
19. business that performs an activity for a fee.
21. account used to summarize the owners equity in a business.
22. an amount that is owed.
23. reports that summarize the financial condition and operations of a business.
26. document that describes the nature of business and how it’ll operate.
27. person or business to who a liability is owed.

1. equation showing the relationship between assets, liabilities and owners equity.
3. report that shows what someone owns and owes and the difference between the two.
4. cost of goods or services used to operate a business.
6. business activity that changes assets, liabilities or owners equity.
8. sale which payment will be received at a later date.
11. use of ethics in making business decisions.
12. assets taken from business for owners personal use.
13. record that summarizes of all the transaction pertaining to an item in the accounting equation.
16. business owned by one person.
18. process designed to compile financial data and summarize results in records/or reports.
20. the name given to an account.
24. differences between the increases and decreases in a account.
25. financial rights to the assets of a business.