Chapter 3 Section 1 Vocabulary

Anything of value that a person or business owns and therefore controls.

• credit

• property

• financial claim

• assets

A legal right to an item.

• credit

• property

• financial claim

• equities

When you buy something and agree to pay for it later.

• credit

• creditor

• financial claim

• equities

The business or person selling you the item on credit.

• credit

• creditor

• assets

• equities

Property and items and value owned by a business.

• accounting equation

• liabilities

• equities

• assets

The accounting term for the financial claims to assets.

• accounting equation

• liabilities

• equities

• assets

The accounting term for the financial claims to assets.

• accounting equation

• liabilities

• equities

• owner's equity

The creditor's claims to the assets of the business.

• accounting equation

• liabilities

• equities

• owner's equity

The relationship between assets and the two types of equities (liabilities and owner's equity).

• accounting equation

• liabilities

• equities

• owner's equity