Chapter 1 vocab

5. The total amount of money to be received in the future for goods and services sold on credit.
7. Amounts owed to creditors. The creditor’s claims to the assets of the business.
10. The removal of cash or another asset from the business by the owner for personal
11. The income earned from the sale of goods and services.
12. The cost of goods or services used to operate a business.
13. The purchase or sale of an item on credit.
15. The accounting relationship between property and financial claims. Assets = Liabilities + Owner’s Equity.

1. Anything of value that is owned or controlled.
2. An economic event that causes a change in assets, liabilities, or owner’s equity.
3. The total amount of money to be paid in the future for the purchase of goods and services used to operate a business
4. Any property or item of value owned by a business
6. Cash or other property provided by the owner to the business for the purpose of making a profit.
8. The owner’s claims to the assets of the business. Also known as Capital.
9. An agreement to pay for a purchase at a later date.
14. A person or business that sells property on credit, or any person or business to which money is owed.