BM Chap 15.1, 15.2, and 15.3 Vocabulary

Organized summaries of a business’s financial information and activities.

• financial records

• record-keeping system

• accounting

• data processing

The process of recording, analyzing, and interpreting financial activities of a business.

• financial records

• record-keeping system

• accounting

• data processing

Money taken in by a business.

• cash receipts

• cash disbursements

• accounts receivable record

• accounts payable record

Cash payments made by a business.

• cash receipts

• cash disbursements

• accounts receivable record

• accounts payable record

The amount customers owe the business (left side of the balance sheet)

• cash receipts

• cash disbursements

• accounts receivable

• accounts payable

The amount the company owes for purchases it made on credit. (right side of balance sheet)

• cash receipts

• cash disbursements

• accounts receivable

• accounts payable

Anything of value owned

• asset

• depreciation

• fixed assets

• book value

Gradual loss of an asset’s value due to age and wear.

• asset

• depreciation

• fixed assets

• book value

Expensive assets of a business that are expected to last and be used for a long time.

• asset

• depreciation

• fixed assets

• book value

The value of an asset after deducting the total amount of depreciation from the asset’s original value.

• asset

• depreciation

• fixed assets

• book value