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accounting 3
| Term | Definition |
|---|---|
| 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 a 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 |
| withdrawal | The removal of cash or another asset from the business by the owner for personal use. |