Accounting Basics

7. Financial reports that summarize the financial condition and operations of a business
8. Plan A formal written document that describes the nature of a business and how it will operate
9. Assets = Liabilities + Owner's Equity
11. Anything of value that is owed
12. An increase in equity resulting from the sale of goods or services

1. The cost of goods or services used to operate a business
2. The difference between assets and liabilities
3. The process of planning, recording, analyzing, and interpreting financial information
4. A person or business to whom a liability is owed
5. An amount owed
6. A sale for which payment will be received at a later date
10. Any business activity that changes assets, liabilities, or owner's equity.