| A | B |
|---|
| Accounts Receivable | Account used to record money that is due TO you. |
| Sales | Account used to record revenue of a business. |
| Prepaid Insurance | Account used to record insurance that has yet to be used but paid for. |
| Capital or Retained Earnings | Account used to close net income to at the end of a fiscal period. |
| Drawing | Account used to record cash withdrawals from an owner. |
| Supplies | Account used to record purchase of pens, paper and other office stuff. |
| Income Summary | Account used to close revenue and expenses to. |
| Advertising Expense | Account used to record purchase of commercial or a billboard to promote the business. |
| Petty Cash | Account used to record small purchases, like supplies or donuts. |
| Miscellaneous Expense | Account used to record expenses that do not fit into any other account. |
| Rent Expense | Account that is used to pay for monthly building payment. |
| Temporary accounts | Account type that is closed each fiscal period. |
| Permanent accounts | Account type that is not closed and will continue indefinitely. |
| Sales Discount | used to record a reduction of what customer owes business because they pay early |
| Net Loss | This is what you have when Expense exceeds Sales. |
| Social Security Tax Payable | Tax taken out of employee checks used to pay for their "retirement" |
| Income Expense | fake account |
| Purchases Expense | fake account |
| Purchases | Account used to record buying or merchandise. |
| Sales Tax Payable | Account used to record the tax paid by the customers for goods purchased. |
| Purchase Tax Payable | fake account |
| Net Income | This is what you have when Sales exceeds Expenses. |
| Accounts Payable | Account used to record amount that is due to others. |
| Utilities Expense | Used to record electric bills, water bills and heat bills. |
