Accounting Terms

2. An equity account representing money withdrawn by the owner.
4. Expense An expense account for employee wages.
7. Debts owed by the business.
9. An asset account representing long-term tools or machinery.
11. A visual tool used to track debits and credits.
14. Receivable An asset account representing money owed to the business.
17. Recognition Principle Revenue is recorded when it is earned, not when cash is received.
18. An asset account representing money on hand or in the bank.
19. Expense An expense account for rent paid.
21. Income earned from business activities.
22. Title A named record used to track financial transactions.
23. An asset account representing goods available for sale.

1. Expense An expense account for promotional costs.
3. Items of value owned by the business.
4. An asset account representing items used in operations.
5. Insurance An asset account representing insurance paid in advance.
6. Costs incurred to operate the business.
8. Payable A liability account representing money owed to suppliers.
10. Revenue A revenue account for income earned from interest.
12. An equity account representing the owner's investment in the business.
13. A revenue account for income earned from selling goods.
15. Accounts Grouping accounts into categories based on their role in the accounting equation.
16. Equation The foundation of double-entry accounting.
20. Expense An expense account for utilities used.
24. Equity The owner's claim on the business assets.