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Chapter 1

Horizontales
Rule makers
Shows revenues earned and expenses incurred to produce net income (net loss)
Account used for customers on account
Selling a product
An account used for a creditor on account
Statement showing inflows and outflows of cash
Shows the changes in owner's equity for the period
Stating data in dollars and cents
Profit when revenue exceeds expenses
Consumed or expired assets, non-recoverable costs
Amounts earned by providing goods or services
Something owed
Recording everything at cost
Why most businesses are formed
Business owned by stockholders
Verticales
A revenue account for a service business
Keeping business and personal info separate
Way of reporting financial information
Rule makers for international accounting
Rules of accounting
Assets = liabilities + Owner's Equity
The language of business
A revenue account for a merchandising business
Having one or more owners
Something owned
Result when expenses exceed revenue