Equations
What's the accounting equation
Assets+Liabilities=Owners equity
What's an Asset
Something you own
which term matches up with Machinery and Property
Asset
Why is the accounting equation important
Captures the relationship between the three components of a balance sheet: assets, liabilities, and Owners equity
What's a liability
Something you owe
Which term matches up with Loans and Accounts Payable
Liability
What must your accounting equation always do
Balance
What is Owners Equity
The amount a business actually owed by the owner
Which term matches up with Common stock and Retained earnings
Owners Equity
What can the accounting system be called
Dual entry system or Double entry system
What is Revenue
Any income earned from the sales of a good or service
Which term matched with Sales and Rent received
Revenue
What's the extended accounting equation
Assets=Liability+Owners Equity+Revenue-Expense
What is the term used for The price paid for goods or survices used to operate a business
Expense
Which term matches with Utilities and Wages
Expense