Ch 3 Glencoe Accounting Vocab Quiz-Acct Equation/Transactions

a person or business that has a claim to the assets of a business; a person or a business to which money is owed

• asset

• liability

• creditor

• borrower

an agreement to pay for a purchase at a later time

• legal document

• contract

• promise

• credit

Money or other property provided for the purpose of making a profit.

• asset

• liability

• owner's equity

• investment

the total amount of money owed to a business

• accounts receivable

• accounts payable

• credit

• creditor

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

• accounts receivable

• accounts payable

• credit

• creditor

when a business or individual buys an item on credit

• accounts receivable

• creditor

• on account

• asset

the costs of goods and services used to operate a business

• assets

• liabilities

• expenses

• owner's equity

income earned from the sale of goods of services

• revenue

• expenses

• owner's equity

• assets

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

• asset

• liabilities

• owner's equity

• account

a legal right to property

• it's mine! it's mine!

• financial claim

• owner's equity

• property