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Details Title: Accounting Description: Chapter 1 Facts Total Flash Cards: 25 Created: 09/07/2006 05:57:21	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term What is the accounting equation most often stated as? Definition Assets = Liabilities + Owner's Equity Term What is accounting? Definition Planning, recording, analyzing, and interpreting financial information. Term What is an accounting system? Definition A planned process for providing financial information that will be useful to management. Term What are accounting records? Definition Organized summaries of a business's financial activities. Term What often contributes to business failures or bankruptcy? Definition Inaccurate accounting records. Term What is a service business? Definition A business that performs a job actively for a fee. Term What is a proprietorship? Definition A business owned by one person. Term What does Encore Music do? Definition They rent office space and instruments used to teach music lessons. Term What is an asset? Definition Anything of value that is owned? Term What are some examples of some assets? Definition Cash of supplies? Term What are equities? Definition Financial rights to the assets of a business. Term What is liability? Definition An amount owned by a business. Term What is owner's equity? Definition The amount remaining after the value of all assets. Term Draw the the accounting equation model. Definition Assets = Liabilities + Owner's Equity Left side amount Right side amount $0 $0 Term What is a transaction? Definition A business activity that changes assets, liabilities, or owner's equity. Term What is an account? Definition A record summarizing all the information pertaining to a single item. Term What is an account title? Definition The name given to an account. Term What is an account balance? Definition The amount in an account. Term What is a Cash account? Definition Is used to summarize info. About the amount of money the business has available. The amount in an account. Term What is a capital? Definition Account used to summarize the owner's equity in a business. Term What is a balance sheet? Definition A financial statement that reports assets, liabilities, and owner's equity on a specific date. Term What are the three major sections of a balance sheet? Definition 1.] Assets are on the left side of the accounting equation. 2.] Liabilities are on the right side of the accounting equation. 3.] Owner's equity is also on the right side of the accounting equation. Term What is an Unit of Measurment? Definition Applied when business transactions are recorded is cedis. Term Whats a business entity? Definition its applied when a business's financial information is recorded and recorded separately from someone's personal info. Term What is the accounting concept going conern? Definition Is applied when financial statements are prepared with the expectation that a business will remain in operation indefinitely.