TERM 1
Account
DEFINITION 1
A detailed record of all increases and decreases that have
occurred in an individual asset, liability, equity during a
specific period
TERM 2
Notes Receivable
DEFINITION 2
A written promise that a customer will pay a fixed amount of
money and interest by a certain date in the future
TERM 3
Prepaid Expense
DEFINITION 3
A payment of an expense in advance
TERM 4
Notes Payable
DEFINITION 4
A written promise made by the business to pay a debt,
usually involving interest, in the future
TERM 5
Accrued Liability
DEFINITION 5
A liability for which the business knows the amount owed but
the bill has not been paid
