| A | B |
|---|
| Account | Where increases or decreases in a specific item are recorded |
| Accounting Equation | Assets=Liabilities+Owner's Equity |
| Accounts Payable | The amount of money owed to creditors |
| Accounts Receivable | Amount of money to be received for goods and services sold on credit |
| Asset | Any property or item of value owned by a business |
| Business Transaction | An economic event that causes a change in the accounting equation |
| Capital | The dollar amount of the owner's equity in the business |
| Creditor | A person or business to whom money is owed. |
| Equity | The total financial claims to the assets of a business |
| Expenses | The costs of operating a business |
| Liabilities | The creditor's claim to the assets of the business |
| On Account | Buying on credit |
| Owner's Equity | The owner's claim to the assets of the business |
| Property | Anything of value that is owned or controlled |
| Revenue | Income earned from the sale of goods and services |
| Withdrawal | When the owner takes cash or other assets from the business for personal use |
