Chapter 3 Vocabulary

Term

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Account

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Terms in this set (18)

A subdivision under assets, liabilities, or owner's equity that summarizes the changes and shows the balance for a specific item

Accounting equation

The accounting relationship between assets and the two types of equities. assets=liabilites+owners equities

Accounts payable

The amount of money owed, or payable, to the creditors of a business

Accounts receivable

The amount of money owed to a business by its credit customers

Property or items of value owned by a business

Business transaction

An economic event that causes a change-- either an increase or a decrease-- in assets, liabilities, or owner's equity

An agreement to pay for a purchase at a later time; an entry on the right side of an account

A business or person to whom money is owed

The total financial claims to the assets of a business

The costs of goods or services used to operate a business