| A | B |
|---|
| business entity | An individual, association, or organization that engages in economic activities and controls specific economic resources. |
| assets | Items that owned by a business and will provide future benefits. |
| accounts receivable | Represents the amount of money owed to the business by its customers. |
| liabilities | Something owed to another business entity. |
| account payable | An unwritten promise to pay a supplier for assets purchased or services received. |
| notes payable | Formal promises to pay suppliers or lenders specified sums of money at definite future times. |
| owner's equity | The amount by which the business assets exceed the business liabilities. |
| accounting equation | The relationship between the 3 acounting elements - assets, liabilities and owners equity. |
| business transaction | An economic event that has a direct impact on the business. |
| account | A separate record used to summarize changes in each asset, liability, and owner's equity of a business. |
| income statement | Reports the profitability of business operations for a specific period of time. |
| balance sheet | Reports a firm's assets, liabilities, and owner's equity on a specifiec date. |
