| Question |
Answer |
| Property |
Anything of value that is owned or controlled. It is the legal right or financial claim to that item. |
| Financial claims |
or property rights is the legal rights to an item. |
| Credit |
buying property with an agreement to pay for it later. |
| Creditor |
Any person or business to which you owe money. |
| Assets |
property or items of value owned by a business |
| Equity |
Financial claims to the Assets of a business. |
| Investments |
Assets, generally long-term in nature, that are not inteded to be converted to cash or to be used in the normal operations of the business in the next accounting period. |
| Owner's Equity |
The owner's claims to the assets of the business. |
| Liabilities |
Creditor's claims to the assets of the buisness. |
| Accounting Equation |
Assets = Liabilities + Owner's Equity |
| Business Transaction |
an economic event that causes a change, either an increase or decrease, in assets, liabilities, or owner's equity. |
| Account |
shows the balance for a specific item, such as cash or computer equipment. |
| Accounts Receivable |
the total amount of money owed to a business. Money you will receive in the future. |
| Accounts Payable |
Amount of money owed, or payable, to the creditors of a business. |
| On account |
When a business or individual buys an item on credit. |
| Revenue |
Income earned from the sale of goods or services |
| Expense |
price paid for goods or services used to operate a business. |
| withdrawal |
Owner takes cash or other assets from the business for personal use. |
mr. charles11
