Read each sentence and translate the common business phrase into the correct accounting term.
⭐ How stars work: more stars = a better result. 3 stars = no mistakes at all.
Accounting is the "Language of Business". Just like medicine or law, it uses specific terms to be precise. Business people might say "We own a truck", but accountants say "We have a Vehicle Asset".
| If People Say... | Accountants Say... |
|---|---|
| "Money in the bank" | Cash |
| "Customers owe us" | Accounts Receivable |
| "We owe suppliers" | Accounts Payable |
| "Owner put money in" | Owner's Capital |
| "We earned money" | Revenue |
| "We spent money" | Expense |
Using the correct term helps financial reports be standard and readable by everyone outside the company (external users).