Small Business terms starting with A

4 terms

1. Accounts Payable An account in the general ledger representing the amount owed by the business to its creditors on open purchased of goods and/or services.
2. Accounts Receivable An account in the general ledger representing the amount due the business from its customers for goods and/or services sold on credit.
3. Amortization The process of reducing debt through regular installment payments of principal and interest that will result in the payoff of a loan at its maturity.
4. Assets What a firm or individual owns.