Chapter 3 Vocabulary Quiz

What is defined as anything of value that a business or person owns and therefore controls?

• Financial Claim

• Property

• Credit

• Revenue

What is a legal right to an item called?

• Credit

• Liability

• Financial Claim

• Asset

What term describes an agreement to pay for a purchase at a later time?

• Revenue

• Credit

• Withdrawal

• Investment

Who is a business or person to whom money is owed?

• Debtor

• Creditor

• Investor

• Owner

What are property or items of value owned by a business called?

• Liabilities

• Assets

• Expenses

• Withdrawals

What is the owner's claim to the assets of the business known as?

• Owner's Equity

• Liability

• Revenue

• Account

What are amounts owed to creditors called?

• Assets

• Liabilities

• Revenue

• Equity

What summarizes the changes and shows the balance for a specific item under assets, liabilities, or owner’s equity?

• Account

• Transaction

• Investment

• Withdrawal

What is the amount of money owed to a business by its credit customers called?

• Accounts Payable

• Accounts Receivable

• Revenue

• Expense

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

• Accounts Receivable

• Accounts Payable

• Investment

• Withdrawal