| A | B |
|---|
| Accounting | The process by which financial information about a business is recorded |
| creditor | one to whom money is owed |
| Accounts Payable | amounts a business must pay in the future |
| Accounts Receivable | Claims for future collection from customers |
| Assets | Property owned by a business (i.e. cash, equipment) |
| Capital | Financial investment in a business (equity) |
| Expenses | Bills that a business must(i.e rent, electricity) |
| Liabilities | Debts or obligations of a business |
| Net income | When your revenue is bigger than all your expenses |
| Net loss | When your expenses are bigger than your revenue |
| Revenue | Money that is made because of the works of your business (haircuts, tree trimming) |
| Withdrawals | When a business owner takes money out of the business, for personal use |
| Debit | An entry on the left side of a T account |
| Credit | An entry on the right side of a T account |
| Normal Balance | The increase side of an account |
| Drawing Account | An owner's equity account set up to record an owner's withdrawal of cash from the business |
