Chapter 1

5. an activity that is performed by a business for a fee.
9. accounting principles that are generally accepted the rules and standards that the accountants will follow while reporting financial activity.
11. summarizing of the financial condition of a business.
12. a business or a person to whoever a liability is owed.
13. showing relationships between owner’s equity assets, and liabilities
16. using ethics to make business decisions.
20. liability
21. Asset
22. a report that shows the individuals owned things, and the things they owe, and the difference between those two.

1. a process of planning designed to summarize results in accounting records.
2. the 2 differences between decreases and increases in the account.
3. a document that is formally written that describes how the business operates.
4. the difference between assets and liabilities that are personal.
6. the remaining amount after all liabilities that is subtracted from the values of assets.
7. assets that are taken from the business for the person or owners use.
8. the business activity that will change assets owners’ equity, and liabilities.
10. right and wrong principles that could guide a person into making decisions.
14. something that summarizes the transaction to an item in the accounting equation.
15. one person that owns a business.
17. the difference between your liabilities and assets.
18. accounts that are used for summarizing owners’ equity in the business.
19. recording and interpreting financial information.