| A | B |
|---|
| Accounts Payable | The amount of money owed, or payable, to the creditors of a business. |
| Accounts Receivable | The total amount of money owed to a business. |
| Credit | An agreement to pay for a purchase at a later time; an entry to the right side of a T account. |
| Creditor | A person or business that has a claim to the assets of a business; a person or business to which money is owed. |
| Equity | The total financial claims to the assets, or property, of a business. |
| Financial Claims | Legal rights to an item. |
| Investments | Those assets owned by a business but not used in the operation of the business. |
| On Account | When a business or individual buys an item on credit. |
| Property | Items of value that are owned or controlled by a business; economic resources of a business. |
| Property Rights | Creditors' and owners' financial claim to the assets of a business. |
| Revenue | Income earned from the sale of goods and services. |
| Expense | The cost of the goods or services that are used to operate a business; expenses decrease owners's equity. |
| Withdrawal | The removal of cash or another asset from the business by the owner for personal use. |
| Assets | Property or items of value owned by a business. |
| Owners Equity | Owner's claims to the assets of the business. |
| Liabilities | Amounts owed to creditors; the claims of creditors to the assets of the business. |
| Accounting Equation | The basis for keeping all accounting records in balance. Assets - liabilities + owner's equity. |
| Business Transaction | A business event, such as the buying, selling. or exchange of goods, that causes a change in the assets, liabilities, or owner's equity of a business. |
| Account | Subdivison under the three sections of the accounting equation used to summarize increases and decreases in assets, liabilities, and owners's equity. |
