F
Exists independently of its owner’s personal holdings.
Business Entity
An agreement to purchase something at a later time, or an entry on the right side of the account.
Credit
The creditor’s claim to the assets of the business.
Liabilities
The purchase of an item on credit.
on account
A group of accounts, also known as the general ledger.
Ledger
Also known as accounting cycle, is a period of time covered by an accounting report.
accounting period
Any person or business that you owe money to.
Creditor
A = L + OE
The Accounting Equation
Income earned from the sale of goods and services
Revenue
Records the different sides of business transactions as debits and credits.
double entry accounting
The assumption that a business has the ability to survive and operate indefinitely.
going concern
Property or items of value owned by a business.
Assets
The total amount of money owed to a business.
accounts receivable
The costs of goods and services used to operate a business.
expenses
An entry on the left side of an account.
Debit
Anything of value that a person or a business owns or controls.
Property
The total financial claim to the assets of a business.
Equities
The amounts owed to the creditors of the business.
Accounts Payable
The removal of cash or another asset by the owner of a business for personal use.
withdrawal
An entry on the right side of an account.
Credit
A legal right to property.
Financial Claim
The owner’s claim to the assets of the business.
Owner's Equity
Is money or other property paid out in order to produce a profit.
Investment
A list of all accounts used by a business.
Chart of accounts
An efficient tool for analyzing double-entry accounting transactions.
T Account