Term
| What is the accounting equation most often stated as? |
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Definition
| Assets = Liabilities + Owner's Equity |
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Term
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Definition
| Planning, recording, analyzing, and interpreting financial information. |
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Term
| What is an accounting system? |
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Definition
| A planned process for providing financial information that will be useful to management. |
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Term
| What are accounting records? |
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Definition
| Organized summaries of a business's financial activities. |
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Term
| What often contributes to business failures or bankruptcy? |
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Definition
| Inaccurate accounting records. |
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Term
| What is a service business? |
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Definition
| A business that performs a job actively for a fee. |
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Term
| What is a proprietorship? |
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Definition
| A business owned by one person. |
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Term
| What does Encore Music do? |
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Definition
| They rent office space and instruments used to teach music lessons. |
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Term
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Definition
| Anything of value that is owned? |
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Term
| What are some examples of some assets? |
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Definition
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Term
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Definition
| Financial rights to the assets of a business. |
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Term
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Definition
| An amount owned by a business. |
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Term
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Definition
| The amount remaining after the value of all assets. |
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Term
| Draw the the accounting equation model. |
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Definition
Assets = Liabilities + Owner's Equity
Left side amount Right side amount
$0 $0 |
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Term
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Definition
| A business activity that changes assets, liabilities, or owner's equity. |
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Term
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Definition
| A record summarizing all the information pertaining to a single item. |
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Term
| What is an account title? |
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Definition
| The name given to an account. |
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Term
| What is an account balance? |
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Definition
| The amount in an account. |
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Term
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Definition
| Is used to summarize info. About the amount of money the business has available. The amount in an account. |
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Term
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Definition
| Account used to summarize the owner's equity in a business. |
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Term
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Definition
| A financial statement that reports assets, liabilities, and owner's equity on a specific date. |
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Term
| What are the three major sections of a balance sheet? |
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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. |
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Term
| What is an Unit of Measurment? |
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Definition
| Applied when business transactions are recorded is cedis. |
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Term
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Definition
| its applied when a business's financial information is recorded and recorded separately from someone's personal info. |
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Term
| What is the accounting concept going conern? |
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Definition
| Is applied when financial statements are prepared with the expectation that a business will remain in operation indefinitely. |
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