Accounting Ch2 Vocab

Front

accounts payable

Back

Amounts a business must pay in the future

Front

accounts receivable

Back

Claims for future collection from customers

Front

assets

Back

Property owned by a business

Front

balance sheet

Back

A formal report of a business's financial condition on a certain date; reports the assets, liabilities, and owner's equity of the business.

Front

break even

Back

A point at which revenue equals expenses

Front

business transaction

Back

A financial event that changes the resources of a firm

Front

capital

Back

The account used to record the owner's financial investment in a business; the master equity account

Front

owner's equity

Back

An owner's financial interest in a business; also called Net Worth

Front

expense

Back

An outflow of cash, use of other asset, or incurring of a liability

Front

fair market value

Back

The current worth of an asset or the price the asset would bring if sold on the open market