Term
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Definition
| Accounting is planning, recording, analyzing, and interpreting financial data. |
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Term
| What is an accounting system? |
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Definition
| A planned process for providing financial info 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 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 an activity for a fee. |
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Term
| What is a proprietorship? |
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Definition
| A business that is 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
| What is the Accounting Equation? |
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Definition
| Assets equals liability plus owner's equity |
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Term
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Definition
| It is 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 left over after subtracting liabilities from assets. |
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Term
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Definition
| A financial statement that reports assets, liabilties, and owner's equity on a specific date. |
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Term
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Definition
| Applied when financial statements are prepared with the expectation that the business will remain indefinately. |
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