| A | B |
|---|
| property | anything of value that a person or business owns and therefore controls |
| financial claim | a legal right to an item |
| credit | when you buy something and agree to pay for it later |
| creditor | the business or person selling you the item on credit |
| assets | property or items of value owned by a business |
| equities | the accounting term for financial claims to assets |
| owner’s equity | the owner’s claims to the assets of the business |
| liabilities | the creditor’s claims to the assets of the business; in other words, the debts |
| accounting equation | the relationship between assets and the two types of equities - liabilities and owner's equity |
| business transaction | an economic event that causes a change |
| account | a subdivision under assets, liabilities, or owner’s equity |
| accounts receivable | the total amount of money owed to a business |
| accounts payable | the amount owed, or payable, to the creditors of a business |
| on account | when a business buys an item on credit |
| revenue | income earned from the sale of goods or services |
| expense | the cost of products or services used to operate a business |
| withdrawal | removal of cash or another assets from the business for the owner’s personal use |
