Accounting Terms

6. expense accounts that record expenditures for work performed by employees.
7. an account which offsets and reduces or offsets the balance of another account.
8. a person or organization that a business owes money.
11. the financial statement that summarizes revenues and expenses for a specific period of time.
12. expense account that records expenses related to the usage of plant and equipment allocated to periods in which they are used.

1. amount determined by deducting cost of goods sold from net sales.
2. a company's distribution of profits to shareholders.
3. financial statement which shows the amount and nature of business assets, liabilities, and owner's equity
4. a preliminary record where business transactions are first entered.
5. Claims by creditors to the property (assets) of a business.
9. owner's claim to the assets of a business.
10. gross increase in owner's equity.
12. customers that owe a business money.
13. properties used in the operation or investment activities of a business.