The accounting equation

1-1assets
1. measurable value
  1. future benefits
    1. possession(own and control)
2. examples
  1. equipment
  2. land
  3. cash
  4. debtor
    1. owes the business money
3. definition
  1. owns and controls
1-2liabilities
1. dept
2. examples
  1. loan
  2. creditors
    1. someone the business owes
      1. accounts payable
By Bradley Reyes
1-3owners equity
1. owners equity=owners share
  1. owners equity=assets-liabilities
    1. share holder equity
      1. incase of corperations
1-4 expenses
1. cost to make money
  1. pay with cash=decrease asset
    1. charge=liabilities incerease
      1. telephone bill=expense
        equipment can be liquidated for money
      2. company car=owners equity
1-5 revenues
1. income
  1. increase owners equity
    1. adds value to company
      1. increases assets
1-6 net income vs. net loss
1. net income
  1. revenues > expenses
2. net los
  1. revenues < expensive

Resource summary

	Created by Bradley Reyes almost 11 years ago