Chapter 3 Word Scramble
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Term | Definition |
Property | Anything of value that a business or person owns and therefore controls. |
Financial claim | Legal right to an item. |
Credit | 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. |
Assets | Property or items of value owned by a business. |
Equities | Total financial claims to the assets of a business. |
Owner's Equity | Owner's claims to the assets of the business |
Liabilities | Amounts owned to creditors; the claims of creditors to the assets of a business. |
Accounting Equation | Accounting relationship between assets and the two types of equities. Assets = liabilities + owner's equity. |
Business Transaction | Economic event that causes a change - either an increase or a decrease - in assets, liabilities, or owners equity. |
Account | Subdivision under assets, liabilities, or owner's equality that summarizes the changes and shows the balance for a specific item. |
Accounts Receivable | Account of money owed to the business by its credit customers. |
Accounts Payable | Amount of owed, or payable, to the credit customers |
Investment | Money or other property provided for the purpose of making a profit. |
On Account | Purchase of an item on credit. |
Revenue | Income earned from the sales of goods and service. |
Expense | Cost of goods or services used to operate a business. |
Withdrawal | Removal of cash or another asset from the business by the owners for personal taste. |
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