Term
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Definition
| The numbers preceding the account titles. |
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Term
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Definition
| As business transactions are recorded, the amounts listed under the heading Assets, Liabilities and Owner's Equity change. |
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Term
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Definition
| A liability account that is used for short-term obligations or charge accounts, usually within 30 days. |
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Term
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Definition
| A company uses an account to record the amounts due from (legal claims against) charge customers. |
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Term
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Definition
| Properties, or things of value, such as cash, equipment, copyrights, buildings, and land, owned and controlled by an economic unit or a business entity. |
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Term
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Definition
| A business is an economic unit in itself and the assets or properties of the business are completely separate from the owner's personal assets. |
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Term
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Definition
| Another term for owner's equity. |
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Term
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Definition
| A method that is demonstrated by the fact that each transaction must be recorded in at least two accounts, keeping the accounting equation in balance. |
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Term
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Definition
| In the business the owners right, claim or financial interest. |
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Term
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Definition
| The costs that relate to earning revenue. |
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Term
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Definition
| The present worth of an asset. |
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Term
| Fundamental Accounting Equation |
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Definition
| An equation expressing relationship of assets, liabilities and owner's equity. |
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Term
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Definition
| Represents debt(the amounts that the business entity owes its creditors). |
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Term
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Definition
| The owner's right to or investment in the business. |
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Term
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Definition
| The amounts earned by a business |
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Term
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Definition
| A separate bank account that helps keep business investment separate from a personal fund. |
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Term
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Definition
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Term
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Definition
| The opposite of an investment in cash by the owner and is treated as a decrease in owner's equity. A drawing |
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