| A | B |
|---|
| asset | anything of value that is owned |
| capital | the account used to summarize the owner's equity in a business |
| expense | a decrease in owner's equity resulting from the operation of a business |
| liability | an amount owed by a business |
| owner's equity | the amount remaining after the value of all liabilities is subtracted from the value of all assets |
| revenue | an increase in owner's equity resulting from the sale of a product or service |
| drawing | account used when assets are taken out of a business for the owner's personal use |
| increase | the normal balance side is always which side of a T account…the increase or decrease side |
| debit | an amount recorded on the left side of a T account |
| credit | an amount recorded on the right side of a T account |
