| A | B |
|---|
| Assets | Resources under business control, as a result of past events, that will provide future economic benefits |
| Liabilities | Future sacrifices of economic benefits. Obligations to external entities. |
| Owners equity | Assets less liabilities. Net Assets. Residual concept. |
| Revenue | Increases in assets or decreases in liabilities that lead to an increase in owners equity, excluding capital contribution. |
| Expenses | Decreases in assets or increases in liabilities that lead to a decrease in owners equity, excluding drawings. |
| Drawings | Owner takes business assets for private use. |
| Capital contribution | Owner injects assets into business. |
| Reporting period | Time over which profit is calculated. |
| Profit | Revenue earned less expenses incurred where revenue is greate than expenses. |
| Loss | Expenses incurred are greater than revenue earned over the reporting period. |
| Document | Used to evidence a busienss transaction |
| Cash Flow Statement | Reports that shows cash inflows and outflows and the cash balance at end of reporting period. |
| Balance Sheet | Report that shows assets and equities at a point in time. |
| Profit/Loss Statement | Report that shows revenue earned less expenses incurred over the reporting period.` |
