Home > Flashcards > Accounting > cycle one

Details Title: cycle one Description: sole proprietorship Total Flash Cards: 22 Created: 10/12/2006 05:50:52	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 accounting Definition planning, recording, analyzing, and interpreting financial information Term accounting system Definition planned process for providing financial information that will be useful to management Term accounting records Definition organized summaries of a business's financial activities Term service business Definition a business that performs an activity for a fee Term proprietorship Definition business owned by one person Term asset Definition anything of value that is owned Term equities Definition financial rights to the assets of a business Term liability Definition an amount owed by a business Term owner's equity Definition the amount remaining after the value of all liabilities is subtracted form the value of all assets Term accounting equation Definition assets = liabilities + owner's equity Term transaction Definition a business activity that changes assets, liabilities or owner's equity Term account Definition record summarizing all information pertaining to a single item in the accounting equation Term account title Definition name given to an account Term acount balance Definition amount in an account Term capital Definition account used to summarize the owner's equity in a business Term balance sheet Definition a financial statement that reports assets, liabilities, and owner's equity on a specific date Term revenue Definition increase in owner's equity resulting from the operation of a business Term sale on account Definition a sale for which cash will be received at a later date Term expense Definition decrease in owner's equity resulting from the operation of a business Term withdrawal Definition assets taken out of a business for owner's personal use Term T- account Definition accounting device used to analyze transactions Term normal balance Definition side of account that is increased