Chapter 2 Vocab

2. The total amount of money to be paid in the future for the purchase of goods and services used to operate a business.
5. The total amount of money to be received in the future for goods and services sold on credit.
7. An entry on the left side of an account.
8. The owner’s claims to the assets of the business. Also known as Capital.
11. An entry on the right side of an account.
12. A list of all the accounts used by a business.
13. Amounts owed to creditors. The creditor’s claims to the assets of the business.
14. The accounting relationship between property and financial claims. Assets = Liabilities + Owner’s Equity.

1. The debit or credit side that is used to increase the account balance.
3. The financial recordkeeping system in which each business transaction affects at least two accounts. It recognizes the different sides of business transactions as debits and credits.
4. Any property or item of value owned by a business
6. The cost of goods or services used to operate a business.
9. The income earned from the sale of goods and services.
10. A tool used by accountants to analyze business transactions.