Chapter 1

4. A sale that increases equity.
7. System- A process of keeping records of your financial reports.
9. Ethics- The usage of ethics in a business.
12. Business- Using a performed activity for a payment.
19. to plan, and to keep track, and clarify financial information.
21. A business scheme that can change assets, liabilities, and owners’ equity.
22. Variances between assets and liabilities.
24. Something owed.
26. Balance- The distinction between an account increases and decreases.

1. Where the cost of something is used to keep a business running.
2. Whoever is owed a liability.
3. Plan- A validated paper used to explain how a business will function.
5. Equity- How much is left after liabilities are subtracted from all assets.
6. Equation- What assets, liabilities, and owners’ equity are altogether.
8. When anyone takes from a business for their own usage.
10. Somebody that is in control of any business.
11. Worth Statement- Shows what one owns, and what one owes.
12. on Account- A payment of a sale that is paid for later.
13. Net Worth Statement- Any personal assets or liabilities and their differences.
14. The ruling for accountants to keep track whenever dealing with financial schemes.
15. Any businesses theory to their assets.
16. Account- A sum that shows someone’s equity in a business.
17. Any future decision made by someone that may be right or wrong.
18. Something owned.
20. A summarization of all transactions concerning any individual item in the accounting equation.
23. Statements- Reports that sum up any financial conditions of any business.
25. Title- The account name given to an account.