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Currency and coins
Cash
Individuals to whom a business owes money
Creditors
Arrangement by businesses to buy now and pay later
Credit
Process of keeping financial records
Accounting
Checks, receipts, invoices, and other items representing a business’s financial transactions
Source documents
Individuals who own shares of stock in a business
Stockholders
A summary that shows how much money a business has made or lost
Income statement
Debts that the business owes
Liabilities
Actually recording the business’s financial transactions
Bookkeeping
A summary with estimates as to when, where, and how much money will come into and go out of a business
Cash flow statement
Anything of value the business owns
Assets
Monies that a business spends
Expenses
Accounting record for a specific department or area of the business statement
Ledger
A process or series of steps that businesses complete to maintain their financial records effectively
Accounting cycle
Those who invest their funds in a business
Investors
A business activity such as a sale or purchase
Transaction
Rules that accountants must follow when preparing financial statements
Accounting standards
Report of a business’s financial condition at a particular moment
Balance sheet
Money received by a business from outside sources
Income
Monetary reward a business owner receives for taking the risk of investing in business
Profit