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Rice Acctg Ch1 Set2

Maplewood Rice Acctg Ch 1 Set 2

QuestionAnswer
Asset Anything of value that is owned.
Equities Financial rights to the assets of a business.
Liability An 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. (Assets= Liabilities + Owner’s equity)
Ethics The principles of right and wrong that guide an individual in making decisions.
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