Assets
The most common asset account.
What is Cash?
You owe another business.
What is Accounts Payable?
Initial Investment account
What is Capital?
An asset that will be converted into cash when paid by your customer.
What is Accounts Receivable?
You use this to pay for online purchases typically and is due within 30 days.
What is a credit card?
Use to account for distributions to a business.
What is a Drawing account?
What is Inventory?
You incur this debt when you buy real estate or a building.
Increases Owner's Equity - Business Income
What is Revenue?
An account that is used to maintain standard supplies needed to conduct business.
What is Equipment?
What is a notes payable?
Decreases Owner's Equity.
What is an Expense?
An account that is used to maintain assets that are paid in advance.
What are Prepaids?
A debt owed to the owners of a business.
Earnings kept in the business.