Accounting involves planning, recording, analyzing and interpreting financial information. Key terms include assets which are things owned, liabilities which are things owed, and capital or a company's worth. The accounting equation states that assets equal liabilities plus capital. A balance sheet is a financial statement that lists a company's assets, liabilities, and capital on a specific date.

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

2. Asset owned

3. On Account Will pay later, credit card

4. Liabilities Owed

5. Capital Company’s worth

6. Accounting Equation ASSETS=Liabilities + Capital

7. Proprietorship Business owned by one person

8. Balance Sheet Financial Statement States the assets, liabilities, and capital on a specific date.

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

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