A retail grocer, for example, must have a stock of groceries and other merchandise to sell to customers. The grocer must also have wrapping supplies and store equipment to serve customers properly and efficiently. Besides these, a supply of cash must be on hand for making change and paying expenses. This property is called the assets of the business. A business owner often obtains some of these assets by purchasing them on credit and promising to pay for them at some future date. The persons to whom these debts are owed are called the creditors of the business. They have claims against the assets until the debts are paid. The creditors’ claims are called liabilities of the business. If the assets are owned free of debt, the proprietor may claim their entire value. If there are liabilities, the proprietor can claim only the value that remains after deducting the liabilities from the as- sets. This claim against the assets is called a proprietorship or capital.