| A | B |
|---|
| accounting equation | assets = liabilities + owner's equity |
| accounts payable | the amount of money owed to a business' creditors |
| accounts receivable | the amount of money to be received in the future for goods and services sold on credit |
| asset | any property or item of value owned by a business |
| business transaction | an event that causes a change in assets, liabilities, or owner's equity |
| capital | the owner's investment in the business is represented by this account |
| expenses | the prices paid for goods or services used to operate a business |
| equities | the total financial claims to the assets of a business are known as ___ |
| liabilities | the debts of a business |
| on account | when a good or service is purchased now but will paid for at a later date |
| property | anything of value that is owned or controlled by an individual or business |
| revenue | income earned from the sale of goods and services |
| withdrawals | when an owner takes cash or other assets out of a business for personal use |
| owner's equity | the owner's claim to the total assets of the business |
| account | the increases or decreases in a specific item caused by business transactions are recorded in a(n) ___ |
| on account | buying ___ is the same as buying on credit |
| creditor | a person or business that sells property on credit, or any person or business to which money is owed |
