| A | B |
|---|
| Property | Anything of value that is owned or controled |
| Creditor | Person or business you owe money to |
| Asset | Anything of value you value |
| Liability | Any money you owe |
| Equity | Financial claim to the assets of a business |
| Basic Accounting Equation | Assets=Liabilities + Owner's Equity |
| Owner's Equity | Capital |
| Accounts Receivable | Money to be received in future for goods or services sold |
| Accounts Payable | Money to be paid in the future for purchases charged on account |
| On Account | Buying on Credit |
| Sole Proprietorship | Single owner of business |
| Partnership | Business owned by 2 or more persons |
| Service Business | Operates to provide a service for a fee |
| Merchandise Business | Buys finished products and resells to individuals or business |
| Manufacturing Business | Buys raw materials and transforms to finished product |
| Revenue | Income earned from the sale of goods and services |
| Expense | Price paid for goods or services used to operate a business |
| Withdrawal | Cash or Assets taken from a business for personal use |
| Debit | Amount entered on left side of T Account |
| Balance Side | Increase side of any account |
| Temporary Capital Accounts | Expenses, Revenue, Withdrawals |
| Chart of Accounts | Official list of all accounts used in a business |
| Liquidity | Ease with which an asset can be converted to cash. |
| Journal | Chronological record of a business's transactions |
| Source document | Evidence that a business transaction has occurred |
