1. Accounts Payable – All Expenses a business has incurred but has not paid yet.
2. Accounts Receivable – All revenue (sales) that a company has provided but has not yet collected payment on.
3. Asset – Anything the company owns that has monetary value.
4. Balance Sheet – A financial statement that reports on all of a company’s assets, liabilities, and equity.
5. Equity – If you take your Assets and subtract your Liabilities, you are left with Equity, which is the portion of the company that is owned by the investors and owners.
6. Liability – All debts that a company has yet to pay are referred to as Liabilities. Common liabilities include Accounts Payable, Payroll, and Loans.
Pronovost, Gareth. “42 Basic Accounting Terms & Acronyms All Business Owners Should Know.” PaySimple Blog, 9 Aug. 2019, paysimple.com/blog/42-basic-accounting-terms-all-business-owners-should-know/.