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Criado por a.j.hemphill
quase 11 anos atrás
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Expenses
Costs Always decreases owner's equity
Cash: Decrease assets Credit: Increase Liabilities
Not Equipment!
Equipment can be converted to cash, expenses cannot.
A car is equipment, an asset (future value) Buying gas for that car is an expense (consumable)
Revenues
Income, or making money
Increases equity Increases assets
Net Income
Making more money than you are losing/spending Revenues-Expenses=positive number
Revenues > Expenses
Net Loss
Revenues-Expenses=Net Income or loss
Losing or spending more money than you are making Revenue-Expenses=negative number
Revenues< Expenses
Owner invests personal cash in the business
Assets: Increase Liabilities: No effect Owner's Equity: Increas
Owner withdraws assets for personal use
Assets: Decrease Liabilities: No effect Owner's Equity: Decrease
Company receives a bank loan
Assets: Increase Liabilities: Increase Owner's equity: No net effect
Company pays back a bank loan
Assets: Decrease Liabilities: Decrease Owner's equity: No net effe
Company purchases land by paying half in cash and signing a note payable for the remainder
Company
Assets:
Assets: Increase and decrease with net increase Liabilities: Increase Owner's equity: No net effect b/c net increase in assets=increase in liabilities
Revenues and Expenses
Net Income and Net Loss
Effects on the Accounting Equation
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