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.

Proprietorship

A business owned by one person.

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.

Business ethics

The use of ethics in making business decisions

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.

Account balance

The amount in an account.

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.