| A | B |
|---|
| 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 | subdivision under the three sections of the accounting equation used to summarize increases and decreases in assets, liabilities, and owner's equity |
| account receivable | The total amount of money owed to a business |
| accounts payable | The amount of money owed, or payable, to the creditors of a business |
| on account | when a business or individual buys an item on credit |
| revenue | income earned from the sales of goods and serivces |
| expense | The cost of goods or services that are used top operate a business; expenses decrease owner's equity |
| withdrawal | The removal of cash or another asset from the business by the owner for personal use |
| property | Items of value that are owned or controlled by a business; economic resources of a business |
| property rights | Creditor's and owner's financial claims to the assets of a business |
| financial claims | legal rights to an item |
| credit | an agrement to pay for a purchase at a later time |
| creditor | a person or business that has a claim to the assets of a business; a person or business to which money is owed |
| assets | property or items of alue owned by a business |
| investments | Those assets owned by a business but not used in the operation of the business |
| equity | The total financial claims to the asset, or property of a business |
| owner's equity | Owner's claims to the assets of a business |
| liabilities | amounts owed to creditors; the claims of creditors to the assets of a business |
| accounting equation | the basis for keeping all accounting records in balance. Assets = liabilities + owner's equity |
