Chapter 1

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Across
  1. 3. Cost of goods or services to operate a business
  2. 5. equity- Amount remaining after the value of liabilities subtracted from value of assets
  3. 7. system- Compile financial data and summarize results in accounting records and reports
  4. 10. net worth statement- Difference between personal assets and personal liabilities
  5. 12. business- Business that performs activities for a fee
  6. 16. Planning, recording, analyzing, and interpreting financial information
  7. 17. Assets taken from the business for the owners personal use
  8. 18. Difference between assets and liabilities
  9. 20. Amount owed
  10. 23. Generally accepted accounting principles
  11. 24. balance- Differences between the increases and decreases in an account
  12. 26. Activity that changes assets, liabilities, or owners’ equity
  13. 27. Financial rights to the assets of a business
Down
  1. 1. ethics- Use of ethics in making business decisions
  2. 2. Increase in equity from sales of goods and services
  3. 4. plan-A formal written document that describes the nature of a business and how it operates
  4. 6. equation- Equation of the relationship among assets, liabilities, and owners’ equity
  5. 8. on account- Sale for which payment is received at a later date
  6. 9. Business owned by one person
  7. 11. worth statement- Reports that shows what an individual owns, owes, and the difference between the two
  8. 13. account- Account used to summarize owner’s equity in a business
  9. 14. Principles of right and wrong to guide individuals in decision making
  10. 15. Anything that is owned
  11. 19. statements- Summarizes the financial conditions and operations of a business
  12. 21. title- Name given to an account
  13. 22. Person or business to whom a liability is owed
  14. 25. Record that summarizes all the transaction pertaining to a single item in the accounting equation