| A | B |
|---|
| Assets | The rights to use resources that have expected future economic benefit. |
| Liability | The obligation to transfer economic resources to suppliers of goods and services at some point in the future. |
| Limited Liability | A situation in which the money invested in a corporation is at risk but investors' personal possessions are not at risk if the business fails. |
| Net Assets | Assets minus liabilities |
| Owners' Equity | Represents the claims on the business to transfer the residual interest (net assets of the business) to the owners. |
| Revenue | An amount earned from rendering services or transferring resources to customers. |
| Expense | An amount incurred from using resources or services in an effort to generate revenues. |
| Net Income | A company's total revenues less its total expenses for a period of time. |
