Asset - A tangible or intangible resource that has economic value, Creditor - Person or organization to whom a debt or obligation is owed., Owner's equity - owner's rights to the assets of a business after liabilities have been paid., Liability - Debt or obligation owed to any person or organization., Loan - Money given to business or person in exchange for future repayment of principal and interest., Net Worth - Difference between an individual's assets and liabilities, Accounting Equation - Assets=Liabilities + Owner's Equity, Account - Record in the accounting system that tracks increases/decreases of assets, liability, revenue and expense., Account Balance - Net difference of all increases and decreases in an account., Capital Account - Account used to record the Owner's equity in a business., Purchase on Account - A promise to pay for goods or services at a later date., Sole Proprietorship - Business owned by one person., Transaction - Exchange of value that can be measured and affects the accounting equation., Accounts Receivable - Current balance of all money owed to a company that has not yet been paid., Expense - Cost incurred to provide products and services to customers., Invoice - Time stamped document outlining the goods or services sold, total amount owed and terms/method of payment., Net Income - Profit that remains after all expenses have been subtracted from revenue., Revenue - money generated from all sales of goods and services., Sale on Account - Agreement to provide a good or service in exchange for payment at a later date., Account Classification - A category of related accounts organized primarily into assets, expenses, liabilities, equity, or revenue (income) classifications., Balance Sheet - A financial statement that marks a company's financial situation at a moment in time, showing all assets, liabilities and owners’ equity., Financial Statement - A summary-level report used to convey the financial position and performance of an organization within a specific time period., Cash Flow Statement - A financial statement that summarizes and organizes the inflows and outflows of cash for an organization over a specific accounting period, also known as a statement of cash flows., Income Statement - A financial statement that summarizes the total revenues and expenses of an organization, and the resulting profit or loss over a specific accounting period, also known as the profit & loss statement.,

Accounting Equation Unit 2

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