Assets - Anything of value that is owned, Liablility - Amounts that are owed to others, net worth - the financial value of the owner after paying all liabilities, Equity - Difference between assets and liabilities, Financial Statements - reports that summarize the financial condition and operations of a business, Accounting - the process of planning, recording, analyzing, and interpreting financial information, Business ethics - Principles of right and wrong that guide a business in making decisions, GAAP - Generally accepted accounting principles, Proprietorship - a business owned by one person, Owners equity - assets = liabilities + ___________ __________, Accounting equation - the equation showing the relationship among assets, liabilities and owner's equity, Capital account - An account used to summarize the owner's equity of a business, Transaction - any business transaction that changes assets, liabilities, or owner's equity, Creditor - A person or business to whom a liability os owed, Revenue - increase in equity resulting from the sale of goods or services is called _______, Accounts Receivable - When services are sold on account to be paid for later, Accounts Payable - When your business purchases supplies and will pay for them at a later time, withdrawal - decreases in owner's equity, Debit - Amount recorded on the left side of the T account, Credit - Amount recorded on the right side of the T account,
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Accounting Terms
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