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