Accounting 1 Terms

3. A person or business to whom a liability is owed.
5. The difference between assets and liabilities also the ownership stake in a company.
6. Income earned resulting from the sale of goods or services.
8. Report that shows the difference between assets and liabilities.
9. An amount paid for the use of money for a period of time.
10. Reports that summarize the financial condition and operations of a business.
12. A business that performs an activity for a fee.
14. Any business activity that changes assets, liabilities, or owner’s equity.
16. Process by which interest is paid on an original amount deposited in a bank plus any interest that has already been paid.
17. Generally accepted accounting principles. The standards and rules that accountants follow while recording and reporting financial activities.

1. Any amount owed.
2. The cost of goods or services used to operate a business.
4. A business owned by one person.
7. The principles of right and wrong that guide an individual in making decisions.
11. Anything of value that is owned.
13. A record that summarizes all the transactions pertaining to a single item in the accounting equations.
15. Process of planning, recording, analyzing, and interpreting financial information.