Chapter 3

3. Any person or business to which you owe money.
7. ___________ DECREASE owner’s equity because they DECREASE the assets of the business (or increase liabilities)
8. A withdrawal ___________ both assets and owner’s equity.
9. Money or other property paid out in order to produce profit.
10. On a company's balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses).
11. The creditor’s claims to the assets of the business.
12. ASSETS=LIABILITIES + OWNER’S EQUITY
14. The liability account.
16. A legal right to an item.
17. Revenue INCREASES _____________ because it INCREASES the assets of the business.

1. The total amount of money owed to a business.
2. When you buy something and agree to pay for it later.
4. Cash, office equipment, manufacturing equipment, buildings, and land are examples of..
5. A piece of land often with buildings on it that is owned by a person, business, etc.
6. An increase or a decrease- in assets, liabilities, or owner’s equity.
13. The owner’s claims to assets of the business.
15. A subdivision under assets, liabilities, or owner’s equity.