Terms Review 1-1 Accounting

Equity

a condition in which people receive from a relationship in proportion to what they give to it

Financial Statement

a summary of all the financial transactions that have occurred over a particular period

liability

(n.) a debt; something disadvantageous

asset

Anything of value that is owned

personal net worth

The difference between personal assets and personal liabilities

Business Ethics

The use of ethics in making business decisions

Accounting

planning, recording, analyzing, and interpreting financial information

Ethics

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

new worth statement

A formal report that shows what an individual owns, what an individual owes, and the difference between the two.

accounting system

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