3.2 TRANSACTIONS THAT AFFECT OWNER’S INVESTMENT, CASH, AND CREDIT Flashcards
1
Q
Economic event that causes change, either increase or decrease, in owner’s equity, assets, or liabilities.
A
Business Transaction
2
Q
subdivision under assets, liabilities, or owner’s equity
A
Account
3
Q
Total money owed to a business, $ to be received later because of the sale of goods or services on credit (asset because it represents a claim to the assets of other people or businesses).
A
Accounts receivable
4
Q
In the future
A
Eventually
5
Q
Amounts owed to the creditors of a business.
A
Accounts payable
6
Q
Money or other property paid out in order to produce profit
A
Investment
7
Q
From one person/company to another
A
Transfer
8
Q
Business buys an item on credit
A
On account
