| A | B |
|---|
| Account | ”A subdivision under assets, liabilities, or owner's equity that summarizes the changes and shows the balance for a specific item |
| Accounting equation | “The Accounting relationship between assets and the two types of equities. ASSETS = LIABILITIES + OWNER'S EQUITY” |
| Accounts payable | “The amount of money owed, or payable to the creditors of the business. |
| Assets | “Property or items of value owned by a business.” |
| Business Transaction | “An economic event that causes a change-either an increase or decrease- in assets, liabilities, and owner's equity |
| Credit | “An agreement to pay for a purchase at a later time.” |
| Creditor | “A business or person to whom money is owed.” |
| Equities | “The total financial claims to assets of a business.” |
| Expense | “The cost of goods or services used to operate a business.” |
| Financial Claim | “Legal right to an item.” |
| Investment | “Money or other property provided for the purpose of making a profit.” |
| Liabilities | “Amounts owed to creditors.” |
| On account | “The purchase of an item on credit.” |
| Owner's Equity | “The owner's claims to the assets of the business.” |
| 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.” |
