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Chapter 3

TermDefinition
Accounts Payable The amount of money owed, or payable, to the creditors of a business.
Accounts Receivable The amount of money owed to a business by its credit customers.
Credit An agreement to pay for a purchase at a later time; an entry on the right side of an account.
Creditor A business or person to whom money is owed.
Expense The cost of goods or services used to operate a business.
Investment Money or other property provided for the purpose of making profit.
On Account The purchase of an item on credit.
Property Anything of value that a business or person owns and therefore controls.
Revenue Income earned from the sale of goods and services.
Withdraw The removal of cash or another asset from the business by the owner for personal use.
Created by: jbowers21
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