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Key Terms property financial claim credit creditor assets equity Property and Financial Claims Section 3.1 Key Terms property financial claim credit creditor assets equity owner’s equity liabilities Home Glencoe Accounting

Property The purpose of accounting is to provide: Property and Financial Claims Section 3.1 Financial information about property The purpose of accounting is to provide: Financial claim to property property Anything of value that a person or business owns. financial claim A legal right to property. Home Glencoe Accounting

What is owned & Who owns it Property Property and Financial Claims Section 3.1 = Financial Claims Property What is owned & Who owns it Home Glencoe Accounting

The financial claim is shared. Property Property and Financial Claims Section 3.1 You buy something on credit. The financial claim is shared. A creditor lends you money. credit When you buy something and agree to pay for it later. creditor Any person or business to which you owe money. Home Glencoe Accounting

Property Property and Financial Claims Section 3.1 Home Glencoe Accounting

Financial Claims in Accounting Property and Financial Claims Section 3.1 Land assets Property or items of value owned by a business. Buildings Cash Assets Manufacturing Equipment Office Equipment Home Glencoe Accounting

Financial Claims in Accounting Property and Financial Claims Section 3.1 The Accounting Equation Liabilities Amounts owed to creditors; the claims of creditors to the assets of a business. Owner’s Equity Owner’s financial claim Home Glencoe Accounting

Financial Claims in Accounting Property and Financial Claims Section 3.1 The Accounting Equation Assets = Liabilities + Owner’s Equity A L OE Home Glencoe Accounting

Do Problem 3-1 on back of notes sheet Home Glencoe Accounting

Financial Claims in Accounting Property and Financial Claims Section 3.1 = Property Financial Claims Assets = Liabilities + Owner’s Equity A L OE The Accounting Equation Glencoe Accounting

Key Terms business transaction account accounts receivable Section 3.2 Transaction That Affect Owner’s Investment, Cash, and Credit Key Terms business transaction account accounts receivable accounts payable investment on account Home Glencoe Accounting

Business Transactions Section 3.2 Transaction That Affect Owner’s Investment, Cash, and Credit Buying a sweater or putting cash in your savings account are examples of business transactions. business transaction An economic event that causes a change—either an increase or decrease—in assets, liabilities, and/or owner’s equity. Home Glencoe Accounting

Business Transactions Section 3.2 Transaction That Affect Owner’s Investment, Cash, and Credit Accounts receivable A business records changes in subdivisions called accounts. Accounts payable account A subdivision under assets, liabilities, or owner’s equity. Home Glencoe Accounting

Business Transactions Section 3.2 Transaction That Affect Owner’s Investment, Cash, and Credit Accounts payable A business records changes in subdivisions called accounts. Accounts receivable accounts payable The amount owed, or payable, to the creditors of a business. accounts receivable The total amount of money owed to a business—money to be received later because of the sale of goods or services on credit. Home Glencoe Accounting

Accounts Assets Liabilities Owner’s Equity Cash in Bank Accounts Receivable Computer Equip Office Equip Delivery Equip Liabilities Accounts Payable Owner’s Equity Crista Vargas, Capital Accounts Glencoe Accounting

Do Math for Accounting and Problem 3-4 on back of notes sheet Home Glencoe Accounting