Intro to Financial Accounting Vocab Words

currency used for the company’s spending

amount customers owe the business

• items used in the day-to-day operations of a business, typically consumed quickly or within a year

• tangible assets that are used for long-term operations in a business. These assets typically have a useful life of more than one year.

Resources that business own

Creditors claims against total assets

Money the company borrows form a lender and agrees to pay back later

amounts due to vendors or suppliers for goods or services received that have not yet been paid for

The ownership claim on total assets a company owens

An amount earned by a corporation and not yet distributed to stockholders.