Accounting Vocab

The _______is Assets = liabilities + Owner’s equity.

• accounting equation

• Business transaction

• Expenses

The amount of money owed to the creditors of a business is________

• accounts payable

• Expenses

When the owner takes cash or other assets from the business for personal use, a _______ occurs.

• Withdrawal

• income

The _______is Assets = liabilities + Owner’s equity.

• accounting equation

• Business transaction

• Expenses

• Revenue

The amount of money owed to the creditors of a business is________

• accounts payable

• Expenses

• Revenue

• Owner's equity

When the owner takes cash or other assets from the business for personal use, a _______ occurs.

• Withdrawal

• income

• Expense

• Investment

The financial statement that shows a company's revenues and expenses over a specific period is called the _______.

• Income Statement

• Balance Sheet

• Cash Flow Statement

• Statement of Owner's Equity

The _______ represents the owner's claims to the assets of the business.

• Owner's equity

• Liabilities

• Revenue

• Expenses

A _______ is a detailed record of all the transactions related to a particular item in the accounting equation.

• Ledger

• Journal

• Invoice

• Receipt

The process of recording financial transactions in a systematic way is known as _______.

• Bookkeeping

• Auditing

• Budgeting

• Forecasting