Chapter 1

2. are a guide between wrong and right decisions.
4. assets taken from a person’s business for personal use.
5. using ethics while making business decisions.
6. anything that has a value and is owned by someone.
8. financial reports of conditions of a business.
12. money that is owed.
13. is a person to whom a liability is owed to.
14. an equation showing the similarities between assets, liabilities, and owners’ equity.
15. a process that is made to pile financial data and shows the results in accounting reports.
16. the process of, recording, analyzing, and showing financial information.
18. is a record that summarizes the transactions of a single item in the accounting equation.
19. the differences of the increasements and decrements of an account.
22. is an account used to rundown the owner’s equity in a business.
24. money remaining after liabilities are subtracted from the assets.
25. is the name given to an account.
26. the price of services used for a business.
27. the accepted accounting standards and rules that accountants should follow while doing their job.

1. difference between someone’s personal assets and liabilities.
3. a formal document that describes the operation of a business.
7. a sale where the payment will be received later.
9. A report that shows what someone owns, owes and the difference between them.
10. the difference between someone’s assets and liabilities.
11. increase in equity in result of a sale of goods or services.
17. business activity that could change their assets, liabilities, and owners’ equity.
20. rights to the assets of a business.
21. a business performing an activity for a cost.
23. business owned by a person.