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Accouting

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Question
Answer
Creditor   A business or person to whom money is owen  
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Assets   Property or items of value owned by a business  
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Business Transaction   An economic event that causes a change-either an increase or a decrease-in assets, liabilities, or owner's equity  
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Capital   Money supplied by investors, banks, or owners of a business.  
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Liability   Amounts owed to creditors; the claims of creditors to the assets of a business  
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Receivibles   Is an asset because it represents a claim to the assets of other people or business  
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Account   A subdivision under assets, liabilities, or owner's equity that summarizes the changes and shows the balance for a specific item  
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Revenue   Income good from the sales and good of service  
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Expences   The cost of goods or services used to operate a business  
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Loans Payable   Amount borrowed from bank  
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Delivery Equipment   Assets  
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Capital   Owner's Equity  
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Supplies   Assets  
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Accounts Payable   Liabilities  
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Accounts Receivable   Assets  
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What is the Accounting Equation?   Assets=Liabilities+Owners Equity  
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What is an asset?   Property or items of value owned by a business  
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What is a liability?   Amounts owed to creditors; the claims of creditors to the asses of a business  
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Bought office equipment with cash   Cash (A) Down Office Equipment (A) Up  
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Paid the rent with a check (same as cash)   Cash (A) Down Capitol (OE) Down  
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Paid a creditor on account   Accounts Payable (L) Down Cash (A) Down  
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Bought supplies on account   Accounts Payable (L) Down Supplies (A) Up  
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The owner invested money into the business   Capitol (OE) Up Cash (A) Up  
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Created by: pichardoa4
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