FABM1 Accounting Terms and Account Titles

Front

Assets

Back

Resources owned by a business that have economic value.

Front

Liabilities

Back

Obligations or debts that a business needs to pay in the future.

Front

Equity

Back

The owner's claim on the assets of the business after all liabilities have been deducted.

Front

Drawings

Back

Withdrawals made by the owner from the business for personal use.

Front

Expenses

Back

The costs incurred in the process of earning revenue.

Front

Revenue

Back

The income generated from normal business operations.

Front

Cash

Back

Money in the form of currency, which includes banknotes and coins.

Front

Accounts Receivables

Back

Money owed to a company by its debtors.

Front

Supplies

Back

Consumable items used in the operation of a business.

Front

Equipment

Back

Tangible property used in the operation of a business.