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Flashcards in Chapter 1 Deck (16)
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1
Q

Planning, recording, analyzing, and interpreting financial information

A

Accounting

2
Q

A planned process for providing financial information that will be useful to management

A

Accounting system

3
Q

Organized summaries of a business’s financial activities

A

Accounting records

4
Q

A business that performs an activity for a fee

A

Service business

5
Q

A business owned by one person

A

Proprietorship

6
Q

Anything of value that is owned

A

Asset

7
Q

Financial rights to the assets of a business

A

Equities

8
Q

An amount owed by a business

A

Liability

9
Q

The amount remaining after the value of all liabilities is subtracted from the value of all assets

A

Owner’s equity

10
Q

An equation showing the relationship among assets, liabilities, and owner’s equity

A

Accounting equation

11
Q

A business activity that changes assets, liabilities, or owner’s equity

A

Transaction

12
Q

A record summarizing all the information pertaining to a single item in the accounting equation

A

Account

13
Q

The name given to an account.

A

Account title

14
Q

The amount in an account

A

Account balance

15
Q

The account used to summarize the owner’s equity in a business

A

Capital

16
Q

A financial statement that reports assets, liabilities, and owner’s equity on a specific date

A

Balance sheet