accounting

Accounting Accounting Planning, recording, Planning, recording, analyzing, and analyzing, and interpreting financial interpreting financial information. information.

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AccountingAccounting

Planning, recording, Planning, recording, analyzing, and interpreting analyzing, and interpreting

financial information.financial information.

AssetAsset

ownedowned

On AccountOn Account

Will pay later, credit cardWill pay later, credit card

LiabilitiesLiabilities

OwedOwed

CapitalCapital

Company’s worthCompany’s worth

Accounting EquationAccounting Equation

ASSETS=Liabilities + CapitalASSETS=Liabilities + Capital

ProprietorshipProprietorship

Business owned by one Business owned by one personperson

Balance SheetBalance Sheet

Financial StatementFinancial Statement States the assets, liabilities, States the assets, liabilities,

and capital on a specific date.and capital on a specific date.

RevenueRevenue

Increase in Capital resulting Increase in Capital resulting from the operations of a from the operations of a business.business.

ExpenseExpense

Decrease in Capital resulting Decrease in Capital resulting from the operations of a from the operations of a business.business.

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