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.

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.

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.

Transaction

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

Account

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

Account title

The name given to an account.

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.