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| accounting | The systematic process of recording and reporting the financial position of a person or an organization |
| accounting equation | A concept that states that assets must always equal the sum of liabilities and owner's equity |
| accounts payable | The total amount a business owes to creditors |
| property | Anything of value that is owned or controlled |
| assets | property or other items of value owned by a business |
| liabilities | creditors' claims to the assets of a business |
| budget | specifies how money will be issued or spent |
| capital | money supplied by investors, banks or owners of a business |
| cash flows | the amount of money that is available to a business at any given time |
| current assets | are either used up or converted to cash during the normal cycle of business |
| accounts receivable | The total amount owed to a business. It repressents money to be received in payments after goods or services are sold on credit |
| balance sheet | A report of the balances in all asset, liability and owner's equity accounts at the end of an accounting period |
| equity | Value of a piece of property less the amount still owed on the money borrowed to purchase it |
| financial forecast | An estimate of a business's financial outlook for each of the next few years |
| fixed assets | Items of value that are held for more than one year |
| Generally Accepted Accounting Principles (GAAP) | Rules that provide a way to communicate financial information to others |
| Income Statement | A report of the revenue, expenses, and net income or net loss for an accounting period |
| Owner's Equity | An Owner's claims to the assets of a business |
