| A | B |
|---|
| account | subdivision under the thre sections of the accounting equation |
| accounts payable | amount owed to creditor for goods purchased |
| accounts receivable | amount to be received from customer for goods purchased |
| assets | property owned by a business |
| capital | money invested in a business by an owner |
| credit | agreement to pay for a purchase at a later time |
| equity | financial claims to the assets of a business |
| expense | costs incurred to run a business |
| liabilities | amounts owed to creditors |
| expenses | costs incurred to run a business |
| owner's equity | owner's claims to the assets of a business |
| property | items of value owned by a business |
| revenue | income earned by a business |
| withdrawal | removal of cash or assets for the owner's personal use |
| profit | amount of revenue earned above the expenses |
| loss | result of spending more than earnings |
| corporation | business organization recognized to have a life of its own |
| sole proprietorship | business owned by one person |
| partnership | business owned by two or more persons |
| charter | written permission to operate as a corporation |
| fiscal period | time covered by an accounting period |
| merchandising | business that buys and resells items |
| manufacturing | business that transforms raw materials into finished products |
| service | business that provides needed services for a fee |
| going concern | assumption that a business entity will operate for an indefinite time |
