Accounting Chapter 1 Vocabulary

3. Anything of value that is owned.
6. The account used to summarize the owner's equity in a business.
8. Organized summaries of a business's financial activities.
10. Financial rights to the assets of a business.
12. The amount in an account.
13. A planned process for providing financial information that will be useful to management.
15. A record summarizing all the information pertaining to a single item in the accounting equation.
17. The principles of right and wrong that guide an individual in making decisions.
18. The amount remaining after the value of all liabilities is subtracted from the value of all assets.
19. A business owned by one person.
20. An equation showing the relationship among assets, liabilities, and owner's equity.
21. The name given to an account.
22. Assets taken out of a business for the owner's personal use.

1. An amount owed by a business.
2. Financial reports that summarize the financial condition and operations of a business.
4. Planning, recording, analyzing, and interpreting financial information.
5. A decrease in owner's equity resulting from the operation of a business.
7. A business activity that changes assets, liabilities, or owner's equity.
9. A sale for which cash will be received at a later date.
11. A business that performs an activity for a fee.
14. The use of ethics in making business decisions.
16. An increase in owner's equity resulting from the operation of a business.