Name: _______________________________________
Notes: Chapter 3.1 – Property and Financial Claims
Vocabulary Term
Property: Ownership and Control (pgs. 46-47)
Definition
Examples
Financial Claims in Accounting (pgs. 47-48)
Definition
Examples
Property
Property Rights or
Financial Claims
Credit
Creditor
Vocabulary Term
Assets
Equity
Investments
Owner’s Equity
Liabilities
Accounting Equation:
_______________________________ = __________________________________ + ______________________________________
1
Notes: Chapter 3.2, Part 1 – Transactions That Affect Owner’s Investment, Cash, and Credit
(pgs. 50-51)
A business transaction is an economic event that causes a change – either an increase or a decrease –
in assets, liabilities, or owner’s equity.
An account shows the balance for a specific item. It is also –
Accounting Equation:
__________________________________ = __________________________________ + ____________________________________
When a business transaction occurs it must be analyzed by the accounting clerk in order to see
how it affects each part of the accounting equation.
Steps of Analyzing a Business Transaction:
1. Identify -
2. Classify -
3. Determine -
4. Make sure -
2