Question

match the following.
amount of money owed to the creditors of a business
amount of money owed to a business
something of value that is owned
a financial statement that shows assets, liabilities, and owners equity on
a specific date
what the business is worth
amount owed by a business
the amount left after the total liabilities is subtracted from total assets
:: accounts payable :: liabilities :: accounts receivable :: assets :: balance sheet :: capital :: owners equity

Explanation:

Each left-side definition is matched to the correct accounting term from the options by standard accounting definitions:

1. Liabilities represent amounts owed to business creditors.
2. Accounts receivable is money owed to the business by others.
3. Assets are items of value owned by the business.
4. The balance sheet is the financial statement listing assets, liabilities, and equity at a specific date.
5. Capital (or owner's equity) represents the business's net worth.
6. Accounts payable is the amount the business owes to others.
7. Owner's equity is calculated as total assets minus total liabilities.

Answer:

• amount of money owed to the creditors of a business → liabilities
• amount of money owed to a business → accounts receivable
• something of value that is owned → assets
• a financial statement that shows assets, liabilities, and owner's equity on a specific date → balance sheet
• what the business is worth → capital
• amount owed by a business → accounts payable
• the amount left after the total liabilities is subtracted from total assets → owner's equity