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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.

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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.

Capital

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

Revenue

An increase in owner’s equity resulting from the operation of a business.

Sale on Account

A sale for which cash will be received at a later date.

Expense

A decrease in owner’s equity.

Withdrawals

Assets taken out of business from owner’s personal use.

Journal

 
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