Asset(s): An item with financial value. Liability: Debts or obligations owed by a debtor to a creditor. Expense: An amount spent on a item for a particular purpose. Account: A formal record that represents transactions, claims of resources, money. Debit: An addition of an asset or expense to a liability or revenue. Credit: A reduction of an asset or expense to a liability or revenue Balance Sheet: A financial statement that reports a individual's or company's assets, liabilites, and equity for a specific point in time. Financial Statement: A statement over a quarter or year that summarizes an individual's or company's revenue, expenses, and net income. Net Income: The amount of profit after expenses are taken out of sales. Accounts Payable: The amount owed to a creditor for completed services. Accounts Receivable: The claim against a debtor for an uncollected amount. Taxes: Required payments to a government to support civil functions, like roads, public services, and the military. More Definitions!