Chapter 3

BONUS!!!! ARE YOU READY?? (RECEIVES A POINT)

A record in the general ledger that is used to collect and store debit and credit amounts

Removing funds from a bank account, savings plan, pension or trust

What is the creditor's claims to the assets of the business?

Balance Sheet Equation

Something your company owns that can provide future economic benefits

Entitles a creditor to receive a payment, or payments, from a debtor in circumstances

Is used when referring to an ownership interest in a business

CASH $$$$

Money owed by a business to its suppliers shown as a liability on a company's balance sheet.

Whats the accounting equation. (Has to be in the right order)

An event that can be measured in terms of money and which affects the financial position

The action or process of investing money for profit or material result.

Accounting Transactions

Entities, companies or people who have provided goods or services, or loaned money to a debtor

What is measured by the $ amount of the claims to the total assets of the business?

investment in the business - the owner's draws or withdrawals from the business + net income

Often the term income is used instead of...

Money owed to a company by its debtors.

Something of value that a person or business owns and therefore controls

Drawing, Draw

Holdings, belongings, Real estate

Accounting entry that either increases a liability, or decreases an asset or expense account.

Sales on account, trade receivables, and receivables

Note Holder

Costs that are matched with revenues on the income statement.