| A | B |
|---|
| Owner's equity | Owner's financial interest in the business. |
| Liability | A business obligation or debt. |
| Net income | Amount remaining when total revenue is more than total expenses. |
| Fundamental Accounting Equation | Assets equal liabilities plus owner's equity. |
| Accounts Receivable | Amounts owed by charge account customers. |
| Assets | Property owned by a business |
| Creditors | Those to whom money is owed. |
| Revenue | Inflows of money or other assets resluting from sales of goods or services. |
| Expenses | Outflow of money as a result of doing business. |
| Accounts payable | Amounts owed by business to vendors. |
