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A planned process for providing financial information that will be useful to management. Accounting records Organized summaries of a business’s financial activities.

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

Accounting records

Organized summaries of a business’s financial activities.

Financial statements

Financial reports that summarize the financial condition and operations of a business.

Service business

A business that preforms an activity for a fee.

Proprietorship

A business owned by one person.

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Asset

Anything of value that is owned.

Equities

Financial rights to the assets of a business.

Liability

A amount owed by a business.

Owner’s equity

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

Accounting equation

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

Ethics

The principles of right and wrong that guide an individual in making decisions.

 
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